Survey Provides Insight into Consumer Debt Habits

July 1, 2010

Nearly one-quarter of adults with nonmortgage debt report owing more than $20,000.

A recent survey conducted by Harris Interactive on behalf of Lending Club, a peer lending network, reveals consumer attitudes and habits regarding debt. Findings include:

• Most Americans have some debt (76 percent). Among those who have debt other than a home mortgage, adults 55 and older are more likely to have credit card debt (73 percent) than younger adults 18-34 (60 percent). For those with debt other than a home mortgage, credit card debt is the most common type of debt overall (67 percent) and often the most expensive type of debt to carry.
• Of those with debt, 87 percent say they carry debt other than a home mortgage, and of those with debt other than a home mortgage 67 percent of them have credit card debt. The next most common type of debt among this group is auto loans (48 percent).
• Twenty-four percent of adults with debt besides a home mortgage report owing $20,000 or more.
• Of those who have debt, younger adults are more likely to have debt other than a home mortgage, with 93 percent of adults ages 18-34 reporting debt other than a home mortgage compared to 83 percent of adults ages 55 and above.
• Older adults, however, are more likely to carry credit card debt, with 73 percent of those 55 and older who have debt besides a home mortgage reporting they have credit card debt, compared to 60 percent of their 18-34 year old counterparts.
• Adults who plan to take out a loan in the next six months are likely to be young, with 26 percent of adults ages 18-34 planning on a new loan within the next six months, compared to just 9 percent of adults aged 55 or older.
• The most common reason for those who are planning to take out a loan was vehicle purchase (37 percent), followed by education expenses (32 percent) and home purchase(s)/refinancing (22 percent).