New Experian survey finds that 45% of U.S. adults say paying off debt has improved their lives
As Americans continue to manage all-time high debt, Experian releases findings from a national survey on how Americans are best tackling their finances. Forty-five percent of respondents report having paid off unmanageable debt by taking on an additional job or side hustle (36%), practicing the snowball debt payoff method (26%), and using budgeting apps (23%).
Americans are also making a game plan for future success with more than 2 in 3 respondents (70%) avoiding taking on additional or unmanageable debt by steering clear of buy-now-pay-later payment options or limiting their use of credit cards. Meanwhile, sixty percent of respondents say they have a support system that could help them if they faced a challenging debt payoff journey. Additionally, half of those surveyed say that paying off debt improved their lives by having less worry and more peace of mind.
“Unmanageable debt can negatively impact many facets of a consumer’s life. While credit is a useful tool for achieving certain financial goals, it must be used wisely,” said Rod Griffin, senior director of Consumer Education and Advocacy at Experian. “It’s encouraging to see that people are showing determination in their efforts to pay off debt, which will help them potentially improve their credit score, build up savings, and reduce stress, paving the way for a more prosperous and happier future.”
Winning at your finances
According to the Experian survey, nearly a quarter of those surveyed (23%) say they have a financial Cinderella story with the most respondents (41%) considering saving money every paycheck or every month for the last 12 months, followed by paying off a major debt (40%), as their big win.
Making an assist to consumers to help improve their financial health, Experian recently announced a $5 million debt relief initiative among 5,000 families in Louisianai by teaming up with Louisiana State University (LSU) basketball player Flau’jae Johnson. The star player and hip-hop artist is championing the initiative and played to win in the college basketball tournament not only for her school, but also for Louisiana families. For every LSU win in the tournament, Experian wiped out an additional $100,000 in consumer debt relief for a total of $300,000 as the Tigers made it to the Elite Eight.
More than 2 in 5 survey respondents (41%) say their biggest misconception about debt before they had to manage it themselves is that minimum payments are enough. For tips on using credit effectively and managing debt, read Experian’s blog post here.
Join Experian’s upcoming #CreditChat “Conquering Debt: Tips for Financial Empowerment This Financial Literacy Month” on April 16 at 12pm PT/3pm ET on X or Threads.
Consumers can also gain financial skills by leveraging a free Experian membership to access tools like Experian Boost®ii to potentially improve their FICO® Scoreiii, see their Experian credit report, and possibly save money through an auto insuranceiv and credit card marketplacev. With a paid premium membership, consumers can also get help with canceling subscriptions and negotiating bills for lower ratesvi.
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