Average Holiday Debt Nears $1,550, Highest in LendingTree Survey's 8-Year History

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Dec 28, 2022, 11:45 ET

Some Debtors Expect to Take 5+ Months to Pay It Off, Up 28% from Last Year

CHARLOTTE, N.C., Dec. 28, 2022 /PRNewswire/ -- According to LendingTree's latest holiday debt survey, 35% of Americans took on yuletide debt, down slightly from last year's 36%, but the average amount of those who took some on this year is $1,549. That's up 24% from last year and is the highest in the eight-year history of the report.

Key findings

35% of Americans took on holiday debt this season, down slightly from 36% last year. However, the average debt taken on reached $1,549, up 24% from last year's $1,249.
37% of those taking on debt expect to take five months or more to pay it off, up from 28% a year ago. This percentage jumps to 47% among Gen Xers and 42% among women.
63% of those who took on holiday debt didn't plan to do so, up from 54% a year ago. This year, the most likely to say they didn't plan to go into debt are women (68%) and those making $35,000 or less a year (67%).

You're a mean one, holiday debt. With skyrocketing inflation, the Federal Reserve raising interest rates, and overall economic uncertainty, it's no surprise that we're seeing the largest spending dollar increase in the history of this report.

To add insult to injury, 37% who took on holiday debt this year expect to take five months or more to pay it off, a big jump from 28% from last year. The news is even worse among Gen Xers ages 42 to 56 (47% to take five months or longer) and women (42%).

"For millions of Americans, it's not possible to pay off their credit cards in full regularly," says LendingTree chief credit analyst, Matt Schulz. "Life is expensive in 2022, and it isn't going to get any less so in 2023. That means that people's financial wiggle room is almost zero, so any unexpected expense can put them in debt whether they like it or not."

Tips To Unwrap Holiday Debt:

Consider a 0% balance transfer credit card or low-interest personal loan. These options can provide you with a lower interest rate to help tackle that debt and pay it off at a much faster rate.
Review your budget. Take another look at your budget and make sure you're being realistic about your spending. You may need to change a few things to not dig yourself deeper into debt.
Call your creditor and ask for a lower APR: Trust us on this one. An April 2022 LendingTree survey showed that 70% of those who asked for a lower APR in the past year got one, but not many people ask.

To view the full report, please visit: https://www.lendingtree.com/credit-cards/study/holiday-debt/

Methodology

LendingTree commissioned Qualtrics to conduct an online survey of 2,050 U.S. consumers ages 18 to 76 from Dec. 16 to 19, 2022. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.

We defined generations as the following ages in 2022:

Generation Z: 18 to 25
Millennial: 26 to 41
Generation X: 42 to 56
Baby boomer: 57 to 76

About LendingTree, Inc.

LendingTree (NASDAQ: TREE) is one of the nation's largest, most experienced online marketplaces, created to give power to consumers so more people can win financially. LendingTree strives to provide consumers with easy access to the best offers on home loans, personal loans, insurance, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more, through its network of over 500 partners. Founded in 1996 and launched nationally in 1998, LendingTree has helped over 111 million consumers obtain financing, save money, and improve their financial and credit health with transparency, education, and support throughout their financial journey.

LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com.

MEDIA CONTACT:
Morgan Lanier
[email protected]

SOURCE LendingTree, Inc.