GREENSBORO, N.C. —
This year has seen our finances change in many ways. While we may be spending a lot less on vacations, concerts, and summer camps, we are probably spending more on food, items for the house, and utilities. Due to major job losses, many folks turned to their credit cards to make payments on necessary items like food, utilities, and even rent. Because of that, there is more debt out there.
LendEDU completed a study with the help of a marketing company, to give a snapshot on debt from the pandemic as well as a look ahead to holiday shopping. You can see the full report here.
The key findings from the LendEDU study included:
- 67% of Americans are reducing holiday shopping this year due to the coronavirus pandemic and its economic impacts, including 82% of those laid off during the pandemic, and 86% of those still out of work.
- 33% of Americans are taking on credit card debt this holiday season to cover holiday shopping costs during the pandemic recession, including 48% of those laid off during the pandemic, and 51% of those still out of work.
- For 63%, the credit card debt they amass this holiday season will be the most they've ever taken on. The same is true for 72% of those laid off during the pandemic, and 75% of those still out of work.
- On top of credit card debt from this holiday season, 74% of Americans said they already have too much credit card debt due to the pandemic recession, including 80% of those laid off during the pandemic, and 86% of those still out of work.
- 55% of Americans are losing sleep over the credit card debt they have amassed from both holiday shopping & the pandemic recession, including 70% of those laid off during the pandemic, and 72% of those still out of work.