CHARLOTTE, N.C., Jan. 8, 2016 /PRNewswire/ -- LendingTreeĀ®,
the nation's leading online loan marketplace, conducted an
end-of-year survey to gauge American feelings towards their own
personal finances in 2015. In addition to measuring their opinions,
LendingTree asked if they had any financial regrets, and if they
had any financial resolutions for the New Year. Interestingly,
Millennials had the highest percentage of financial regrets in 2015
but were also more likely to set a financial goal for the coming
year.
A Financial Overview of 2015
Overall, 2015 was a lukewarm year for most Americans. As of
December 2015, only 12.65% of
Americans felt they were financially in a great position. Nearly
the same amount of people, 11.06%, felt they were in a bad spot and
that 2015 was a very hard year, financially. Over half of
Americans, or 58.22%, were somewhere in the middle, either fair or
good, but stated they had room for financial improvement. The
remaining 18.08% felt that at the end of 2015, they were not in a
good financial position and it had been a year of struggle.
When asked about financial regrets in 2015, nearly 40 percent of
Americans (39.54%) stated they should have put more money into
general savings. The second largest financial regret of 2015 was
failing to stick to a set monthly budget (34.91%) followed not
reducing or paying off debt (32.97%). Less than a quarter of
Americans (24.05%) stated they had no financial regrets for
2015.
All of these numbers are slightly worse amongst Millennials.
Amongst 24 to 34 year olds, 17.09% feel they were in a bad spot as
of the end of 2015, with only 5.82% stating they were great, a
significant difference from the national average. Millennials have
the same leading financial regrets as the national responses, but
in much higher numbers:
- 57.82% of Millennials wished they had put more money into
general savings
- 50.18% of Millennials wished they had better followed a set
monthly budget
- 42.91% of Millennials wished they had reduced or paid off more
debt
Only 11.27% of Millennials stated they had no financial regrets.
Even with a better economy, Millennials continue to be frustrated
by their inability to save and pay off student debts.
Outlook and resolutions for 2016
American optimism towards finances in 2016 is somewhat reserved.
Only 10.76% state it will be a great year and that their finances
will be fine. Most Americans feel the year will be OK with some
financial ups and downs (39.94%) or that it will be a good year and
a year for some financial improvement (30.18%). About 1 in 5
Americans have a pessimistic outlook on their personal finances for
2016 stating it will either be a bad or very bad year with money
continuing to be a struggle or that personal finances may
worsen.
Financial goals are on nearly 85 percent (84.61%) of American's
New Year's resolutions this year.
Financial resolutions are in line with last year's financial
regrets. The leading financial resolution amongst Americans is
putting more money into general savings with 44.42% including the
selection. Reducing or paying off debt was the second most popular
financial New Year's goal with 41.98%
having it on their resolutions list. Third, was sticking to a set
monthly budget with 36.60% of Americans including it on their
financial resolutions list for 2016.
While Millennials may have trailed fiscally in 2015 by having
the most regrets, Millennials were substantially more likely to
include financial resolutions in their New
Year's goals with 93.82% having at least one financial goal.
Millennials stated not only did they wish to put more into savings
(64.36%), stick to a set budget (49.45%), and reduce debt (48.36%),
they also were more likely to include saving towards a large
purchase (36.36%) and improving their credit score (38.91%) as part
of their resolutions.
And the 2016 housing market?
Even though financial outlook is reserved amongst Americans, the
housing market looks pretty positive for 2016. Of the total survey
respondents 5.43% of Americans, expect to purchase a home in 2016.
About one in five Americans (19.17%) said they may purchase a home
depending on their financial situation and available opportunities.
Within this pool of potential homebuyers in 2016, 37.85% will be
first-time home buyers, of which almost 43% will be
Millennials.
Based on the survey data, first-time home buyers will be largest
home buyer group, followed closely by current homeowners looking to
change homes (36.23%). Of potential homebuyers, 13.36% will be
previous homeowners, now returning to the home buyer market. These
numbers may include normally active homeowners in transition or
homeowners who may have lost a home during the housing crisis.
Because the housing 2015 marked the seventh year since the 2008
housing bubble that caused many foreclosures. This is significant
as a foreclosure remains on your credit report for 7 years.
In terms of supply, 4.64% stated they plan to sell their homes
in 2016. 14.40% may sell their homes depending on the situation.
Based on these numbers, there may be more housing demand than there
will be housing supply in 2016 creating a very competitive market
for shoppers. With the recent increase in interest rates by the
Fed, plus hot market competition, we may see some want-to-be
homebuyers, priced out of the market, until at least supply,
especially affordable starter homes, meet demand.
Aiming high
We will have to see if America sticks to its financial
resolutions. Less than 1 in 4 of American's completed all their
resolutions last year. About 1 in 5 Americans state they, on
average, last a week or less with resolutions and another third
drop off before the first half of the year. Meaning about 20
percent of American's may have already quit their financial
resolutions as of this release!
Methodology
The LendingTree 2016 New Year's
Financial Resolutions Survey was conducted online within
the United States by SurveyMonkey
on behalf of LendingTree between December 14
and December 17, 2015 among a sample of 2,008 Americans ages
25 and up.
To visit or link the original press release and to download the
high-quality versions of the images, please visit
https://www.lendingtree.com/press-release/americas-financial-resolutions-for-2016.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree provides
an online marketplace which connects consumers with multiple
lenders that compete for their business, as well as an array of
online tools and information to help consumers find the best loan.
Since inception, LendingTree has facilitated more than 55 million
loan requests. LendingTree provides free monthly credit scores
through MyLendingTree and access to its network of over 350 lenders
offering home loans, personal loans, credit cards, student loans,
personal loans, business loans, home equity loans/lines of credit,
auto loans and more. LendingTree, LLC is a subsidiary of
LendingTree, Inc. For more information go
to www.lendingtree.com, dial 800-555-TREE, like
our Facebook page and/or follow us on
Twitter @LendingTree.
CONTACT:
Megan Greuling
704-943-8208
Megan.Greuling@tree.com
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SOURCE LendingTree