Credit Advisor logo 4

GET OUT OF DEBT WITH NO REGRET

Credit Advisor logo 4

51% of Americans Will Set a 2021 Money Resolution, and Getting Rid of Debt Tops the List

admin-ajax

DISCLAIMER: As the COVID-19 public health situation evolves, new regulations are being continually issued. This page/story/information may not include the most recent information.

By MagnifyMoney.com Dec 16, 2020 Updated Dec 16, 2020

CHARLOTTE, N.C., Dec. 16, 2020 /PRNewswire/ — Despite the general chaos of 2020, more than half of Americans will make a money resolution for 2021, and another 16% are undecided, according to the latest MagnifyMoney survey. Among those planning a 2021 money resolution, about half said they want to reduce debt or become debt-free.

In light of the COVID-19 pandemic, MagnifyMoney also looked at how people did with their 2020 money resolutions. According to the survey of more than 1,000 Americans, 53% of those who set a money resolution for 2020 achieved it, and another 36% have made progress.

Key Findings:

  • 51% of Americans will make a money resolution for 2021, up from 47% this year. Those most likely to set a financial goal include six-figure earners (67%), college graduates (64%), millennials (62%) and men (55%).
  • The top three 2021 money resolutions are reducing debt and/or becoming debt-free (50%), raising credit scores (46%) and increasing savings (45%). 
  • About 59% of those who will set a resolution said the pandemic’s continued economic impact may prevent them from achieving that goal. In all, 97% of resolution setters named at least one barrier they may face.
  • 53% of those who set a 2020 financial resolution have achieved that goal, and an additional 36% have made progress. Men (62%) and Gen Zers (58%) were most likely to achieve their resolution.
  • 62% of those who set a 2020 financial goal changed it because of the crisis. That number jumps to 83% for those who were laid off or furloughed and 76% for those whose salary or hours were cut, compared with just 40% who didn’t lose income.

Resolution-setting is popular in the U.S., and Americans will have various resolutions for 2021.

“New Year’s resolutions are all about improving and feeling better about yourself,” said Matt Schulz, LendingTree chief credit analyst. “The truth is that little makes people feel better about themselves than getting out of debt. That’s why it is always one of the most common resolutions each year, along with improving your health.”

The pandemic’s impact has been widespread and has impacted people’s resolutions. The way that plays out can vary widely based on individual circumstances.

“Those who were able to keep their jobs and avoid contracting the virus may have found that the pandemic helped their resolutions,” said Ken Tumin, founder of DepositAccounts, noting that reduced travel and entertainment expenses could also be a helpful factor. “The low-interest rate environment that took hold when the pandemic began has made it possible for people to save money by refinancing mortgages and other loans. All of these may have made it easier to accomplish money resolutions this year.”

To view the full report, visit: https://www.magnifymoney.com/blog/banking/money-resolution-survey/.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,052 Americans, with the sample base proportioned to represent the overall population. The survey was fielded Nov. 19-24, 2020.

We defined generations as the following ages in 2020:

  • Generation Z: 18 to 23
  • Millennial: 24 to 39
  • Generation X: 40 to 54
  • Baby boomer: 55 to 74

While the survey also included consumers from the silent generation (defined as those 75 and older), the sample size for that group was so small that findings related to that group weren’t included in the generational breakdowns.

About MagnifyMoney

MagnifyMoney.com, a subsidiary of LendingTree, makes it easy for consumers to shop for the best financial products and get answers to their most important financial questions. MagnifyMoney’s unbiased advice and comprehensive product database helps millions of people compare credit cards, loans, checking accounts and savings accounts. MagnifyMoney’s newsroom of personal finance experts is dedicated to helping people save money and lead financially healthier lives through strategies and tips for avoiding fees, getting out of debt, paying off student loans, avoiding consumer scams and other financial topics. MagnifyMoney was launched in 2014, was acquired by LendingTree in 2017, and is based in New York, NY. For more information, please visit www.magnifymoney.com.

Media Contact:
Nancy Jones
nancy@lendingtreenews.com

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Scroll Up

Michigan license number:   DM-0016282 Available to the public and licensed in Michigan.

Section 13(1)  When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00

Section 13(2)  A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar amount, of the debtor’s creditors within 90 days after establishing the debt management plan. If the required consent is not actually received by the licensee, the licensee shall provide notice to the debtor of the lack of required consent and the debtor may, at its option, close the account. If the debtor decides to close the account, any unexpended funds shall be returned to the debtor or disbursed as directed by the debtor.

Sec. 14. (1) A contract between a licensee and debtor shall include all of the following:

(a) Each creditor to which payments will be made and the amount owed each creditor. A licensee may rely on records of the debtor and other information available to it to determine the amount owed to a creditor.

(b) The total amount of the licensee’s charges.

(c) The beginning and termination dates of the contract.

(d) The principal amount and approximate interest charges of the debtor’s obligations to be paid under the debt management plan.

(e) The name and address of the licensee and of the debtor.

(f) Any other provisions or disclosures that the director determines are necessary for the protection of the debtor and the proper conduct of business by a licensee.

Sec. 18. (1) In addition to the fee described in section 13(1), a licensee may charge a reasonable fee for providing debt management services under a debt management plan. The fee under this subsection shall not exceed 15% of the amount of the debt to be liquidated during the express term of the plan.

(2) A licensee may offer a debtor the option to purchase credit reports or educational materials and products, and charge a fee to the debtor if the debtor elects to purchase any of those items from the licensee.  Fees charged under this subsection are not subject to the 15% limitation on fees described in subsection (1).

(3) Except for a cancellation described in subsection (4), in the event of cancellation of or default in the performance of the contract by the debtor before its successful completion, a licensee may collect $25.00 in addition to any fees and charges of the licensee previously received by the licensee. This $25.00 fee is not subject to the 15% limitation on fees and charges under subsection (1).

(4) A contract is in effect when it is signed by the licensee and the debtor and the debtor has made a payment of any amount to the licensee. The debtor has the right to cancel the contract until 12 midnight of the third business day after the first day the contract is in effect by delivering written notice of cancellation to the licensee. A cancellation described in this section is not subject to, and a licensee shall not collect, the fee described in subsection (3).

(5) If a debtor fails to make a payment of any amount to a licensee within 60 days after the date a payment is due under a contract, the licensee may, in its discretion, cancel the debt management contract if it determines that the plan is no longer suitable for the debtor, the debtor fails to affirmatively communicate to the licensee the debtor’s desire to continue the plan, or the creditors of the debtor refuse to continue accepting payments under the plan.

(6) A licensee shall not contract for, receive, or charge a debtor an amount greater than authorized by this act. A person that violates this subsection, except as the result of an inadvertent clerical or computer error, shall return to the debtor the amount of the payments received from or on behalf of the debtor and not distributed to creditors, and, as a penalty, an amount equal to the amount overcharged.

530 W Allegan Street, 7th Floor
Lansing, MI  48909-7720
877-999-6442

Credit Advisor Logo 3

Schedule a Call Back

Credit Advisor Logo 3

Get Help Now!