Here’s a 2019 holiday debt recap before we start the first 2020 work week. Notable: Gen X added most debt to keep Gen Z kids and Boomer parents happy. Not Cool: 78% Will Carry 2019 Holiday Debt, Most With Rates 15-25%. Don’t be lazy! Find out what to do below.
OK, CHEAPSKATE BOOMERS!
– 57% of consumers didn’t plan on adding holiday debt, but 44% added debt anyway.
– Of these 44% of consumers adding holiday debt, 52% were Gen X, 50% were Millennials, and 36% were Boomers.
– Chart below shows consumers added $1325 on average.
– It doesn’t show Gen X added $2,076, Millennials added $1,215, Boomers added $606.
– OK, cheapskate boomers! What’s up with that?
– I’m Gen X, and though we supposedly like to watch the world burn, we’re also straight up middle gen. Must spend on Gen Z kids and Boomer parents.
– Also in all seriousness regarding Boomers, they may have (better have!) used cash for presents.
MOST NEED MONTHS TO PAY HOLIDAY DEBT
– Chart below shows 78% won’t be able to pay off debt come January.
– This includes 15% who will only make the minimum payment.
– Definitely not great but trying to make people happy is understandable.
– 36% said their most expensive gift purchase was for their child.
– 32% said their most expensive gift purchase was for their spouse/significant other.
– Lots of happy families out there.
– Still if debt takes months to pay off, the super high interest adds up fast.
– See next section for high rates and solving lazy attitudes lowering those rates.
DON’T BE LAZY ON HIGH INTEREST DEBT!
– 70% used credit cards for 2019 holiday shopping, which have rates of about 15%.
– 21% used store cards, double the 2018 percentage, which is insane because these cards have rates of about 25%.
– 20% used personal loans, double the 2017 percentage.
– The personal loan space is competitive so these rates can be lower.
– But 36% of survey respondents said their rate (on whatever debt type they have) is 20% or more.
– GOOD NEWS: 40% plan to consolidate debt and/or shop for lower balance transfer rates.
– TERRIBLE NEWS: more than half won’t shop because 20% think it’s not necessary, and 18% don’t want to switch banks.
– If you’re going to hold debt more than 6 months and/or make minimum payments, don’t be lazy! You can find lower rates easily.
Good survey data from Magnify Money. Source link with more info below.