Fewer Consumers Expect to Pay Down Debt in 2008
TransUnion's TrueCredit.com has commissioned GfK Roper Public Affairs & Media to assess Americans' thoughts about their finances at the turn of the New Year. "The survey found that in 2007, one in four (25 percent) of all Americans missed making one or more on-time bill payments, with the bulk of those delinquencies occurring on Utilities (12 percent), Credit Cards (12 percent) and Medical Services (11 percent). Meanwhile, only 17 percent choose paying down debt as their top resolution for 2008, down notably from 22 percent in last year's survey."
"It's important to realize that making regular on-time payments on all of your accounts is an essential component of long-term credit health," said Lucy Duni, director of Consumer Education for TransUnion's TrueCredit.com. "To keep your credit in good standing, set up an automatic funds withdrawal to ensure you don't miss a billing cycle and if you're in a financial bind, consider contacting your creditors to explore special payment arrangements for your particular situation."
Less than one-third of Americans (32 percent) pick eating healthy or losing weight as their number one resolution for 2008, compared with 37 percent last year. Nearly the same percentage (31 percent) chooses spending more time with their family as their top resolution, up significantly from 23 percent last year. Just 13 percent name furthering their education; this was 11 percent a year ago. Only 17 percent identify paying down credit cards and other debt as their top priority for 2008, as compared with 22 percent a year earlier. "The drop in priority for paying down debt may be an indication that more consumers are struggling today just to maintain their financial status quo," added Duni.
When asked about their greatest financial concerns in 2008, 40 percent pick their salary level or job prospects and 41 percent name making non-mortgage payments.
The survey also found correlations between age and attitudes about finances:
- Ninety-three percent of 18-24 year olds express some financial concern overall in 2008, compared with 69 percent of those 65+
- 35-49 year olds (19 percent, compared to 14 percent overall) are most apt to be concerned about mortgage payments
- Forty-two percent of those 65+ are concerned about the value of their stocks and other investments, compared with 21 percent of both 18-24 year olds and 25-34 year olds
"As consumers move through various life-stages, their financial priorities and concerns will shift," adds Duni. "But whether they're looking to purchase their first home or make the most of their retirement, managing their own credit health can help them achieve their goals."
Add your comment... (note that all comments are reviewed before they're published)