"When it comes to breaking the cycle of debt, most Americans have good intentions. What they lack are the tools, support and knowledge to manage their debt wisely. They dream of a debt-free future, but need to learn how to become smart borrowers to make that dream a reality." – Ed Powell, chief consumer officer at LendingTree.com.
Americans (just like me) on the whole dream of a debt-free future but few are doing anything to plan for that scenario, according to a new survey released by LendingTree.* The vast majority of people who are most concerned about their debt have no intention or definitive strategy to manage it, but instead plan to make big-ticket purchases that will make their financial situation even worse.
80% of the respondents believe their future holds a life completely free from debt. However, few plan to use smarter borrowing practices and decision making to make this dream a reality. Isn't that just like us? : - )
Consumers indicate in their responses that they are either not doing enough or are making matters worse with unnecessary purchases that will ultimately aggravate the situation.
Some of the alarming findings of the survey:
· Of the 76% with outstanding balances on credit cards/personal loans and are concerned about their overall level of debt, 37% are only making minimum payments and playing "credit card bingo" by rolling over balances to lower interest cards.
· 30% of those who lack a financial plan are more concerned with the amount of their monthly payments than the overall terms of a loan.
· Almost one in four consumers surveyed have a debt-to-income ratio of 50% or more.
EverydayWealth gives American consumers the tools, support and knowledge they need to manage their debt wisely. They help Americans make their dreams a reality. (I have used these services for over two years now.)
*About the survey: LendingTree.com, via Insight Express, polled more than 1000 respondents during December, 2004 for their Smart Borrower Survey.