The Lengths People Would Go To Achieve Debt-Free Living
What would you do to be completely debt-free? I can think of tons of things I’d do. A new survey found that 32% of Americans would give up social media for a year (I could easily do that), 31% would spend a night on a remote island, and 29% would even go a month without internet access. Giving up the internet sounds great and all, but what if you work from home? You might have to use some of your PTO.
According to a poll of 2,000 U.S. adults, the average person feels they could only stay debt-free for about 8.5 weeks before racking up new debt. The research also looked at people’s confidence in staying debt-free, revealing that only 38% feel “very confident” they can manage it. Not even half! That’s pretty alarming.
Among the least confident respondents (384 people), reasons included the rising cost of living (54%), unexpected expenses (46%), increasing interest rates (29%), lack of support (20%), and the pressure to keep up with others (16%). Inflation has really messed up people’s lives. With high inflation and stagnant wages, many folks are likely taking out loans just to cover their expenses.
People’s biggest debt struggles are credit card debt (57%), mortgages (30%), auto loans (30%), and medical debt (28%).
For me, it’s credit card debt and student loans. Once I get rid of those, I’ll feel a HUGE relief!
WHAT WOULD PEOPLE DO TO BE DEBT-FREE?
- Give up social media for a year – 32%
- Spend a night on a remote island – 31%
- Give up internet access for a month – 29%
- Go skydiving – 20%
- Eat something gross – 19%
- Go storm chasing during tornado season – 18%
- Get tackled by a linebacker – 14%
- Go BASE jumping – 12%
- Swim with sharks – 12%
- Complete a triathlon – 11%
- Run with the bulls – 11%
The High Cost Of Debt And What People Would Trade To Be Free
A survey by OnePoll for Beyond Finance‘s National Financial Freedom Day found that the average person has $54,767 in debt, with 56% saying they owe more for necessities than for luxuries. Many people have had to put off major life events, like buying a home (33%), a car (30%), or starting a child’s savings fund (24%). I totally get it.
But what would people do if they woke up debt-free? Thirty-two percent would boost their emergency fund, 27% would buy their dream home, and 26% would finally take that long-awaited vacation.
Others mentioned they would switch careers, start a business, pay for their children’s education, or help their parents with debts. If I were debt-free, I’d invest some money, give back to the community, take a month-long vacation, start a business, and so much more!
People also shared what they’d be willing to do to become completely debt-free: 32% would give up social media for a year, 31% would spend a night on a remote island, and 29% would go a month without internet access.
“Debt can sometimes deter people’s short- and long-term goals for themselves and their families,” said a spokesperson for Beyond Finance. “Learning to manage it effectively can be life-changing, but 49% admit to feeling anxious about their debt, which may make it challenging to focus on finding solutions.”
High Rates And Increasing Balances
What makes debt so stressful for many people? High interest rates (24%), not being able to pay it off (22%), and watching the amount owed increase (20%). I can relate to hating high interest rates! My student loan balance barely goes down because of them. No matter how often I make payments, the interest just piles back up, making it feel like I’m wasting money.
But not all dues are bad. Almost half (48%) of people said some of their dues are worth it, like mortgages (38%), car loans (33%), and home improvements (28%). I agree; some debt can be beneficial, especially if it helps improve your credit score.
A lot of people are looking for support to manage their dues, with about a third (31%) finding family to be the most helpful resource. However, only 29% feel “very confident” about paying off their current debts on time, with fewer women feeling confident compared to men (19% vs. 41%).
And 41% believe it will take them years to be debt-free. I’ve had debt since college, and unless I win the lottery, become a millionaire, a miracle happens, or the government forgives my debt, I don’t see myself becoming debt-free anytime soon.
“Choose a debt resolution program that’s personalized to your needs and helps you keep track of your progress. Seeing your debt gradually diminish is a great way to stay motivated on the path to becoming debt-free,” the spokesperson added.
DEBTS THAT WERE WORTH IT
- Mortgage on a home/ apartment – 38%
- Car loan – 33%
- Home improvement/ repairs – 28%
- Medical bills – 27 %
- Graduate school – 17%
- Small business loan – 15%
- Undergraduate school – 14%
Survey Methodology
This random double-opt-in survey of 2,000 general population Americans was commissioned by Beyond Finance between June 9 and June 12, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
