30% of adults who took out a loan in the past six months used it for emergencies or to pay bills, according to a ScoreSense study

1 in 4 adults surveyed take out a loan to pay off their credit card debt

Dallas , November 4, 2022 /PRNewswire/ — A consumer survey by PRNewswire/ — found that 30% of consumers who took out a loan in the past six months took out a loan for an emergency or to pay bills, and one in four recently took out a loan. I used it to pay off my credit card debt. score sense®, a credit score monitoring product. Findings revealed inConsumer Survey with Recent Loan and Credit Outlook Analysis‘ focuses on consumer loan and credit activity in Q3 2022.

(PRNewsfoto/ScoreSense)

A ScoreSense study found that 1 in 4 people use a recent loan to pay off their credit card debt.

ScoreSense’s analysis of consumer credit activity shows that budgets are becoming increasingly tight for consumers of all ages. With rising interest rates, fewer people are interested in securing new loans, and more people with loans are taking loans just to keep going. top of the bill. The survey showed continuing credit spending, overspending, and late payments. Seniors are similarly experiencing increased delinquency and card over limit spending, demonstrating the stress this economy places on bonds. The ScoreSense Loan Survey found that adults 65 and older are more likely to take out a loan in an emergency than the younger adults surveyed.

An analysis of consumer spending and credit comparing the third quarter of 2022 to the same period last year reveals:

  • The delinquency rate increased by 21% from Q3 2021 to Q3 2022. Year-on-year, it’s up 14% from Q2 to Q3.

  • Card over limits increased by 11% from Q2 to Q3 of 2022.
    New business, where consumers open new lines of credit, fell 18% from Q2 to Q3. This number is consistent with what we see in the decline in credit and financial services website traffic. Rising interest rates have reduced consumer interest in securing new loans.

Consumer research by ScoreSense focused on adults who took out loans (personal, home equity, home equity lines of credit, debt consolidation, etc.) revealed:

  • One in four adults took out a loan to pay off their credit card debt.

  • Adults over the age of 65 were more likely to take out a loan in an emergency than the younger adults surveyed.

  • Nearly a quarter (23%) of survey respondents said they took out a loan for a personal project.

  • One in five respondents (19%) took out a loan to renovate their home, and 18% of the loan was needed to buy a car.

  • Adults aged 25 to 34 (23%) were more likely to take out loans for new home purchases and related expenses.

“Despite efforts by the Federal Reserve to curb inflation, prices remain high or continue to rise, and many Americans continue to struggle.” Carlos MedinaSenior Vice President One Technologies, LLC, which provides ScoreSense. “While many adults use credit to pay their regular expenses, rising interest rates are making it more difficult for many to pay off their debts. Our research and credit analysis show that: These issues span all age groups, including seniors using bonds.”

ScoreSense serves as a one-stop digital resource where consumers can access credit scores and reports from all three major credit bureaus, TransUnion.®Equifax®and Experian®— and understand what affects their credit the most.

About One Technologies

One Technologies, LLC uses technology, analytics and the power of its people to create solutions that enable consumers to make more informed decisions about their financial lives.The company’s consumer credit products include: score sense®, which allows members to seamlessly access, interact with, and understand their credit profile from all three major bureaus using a single application. The ScoreSense platform is continually updated to provide members with deep insights, personalized tools, and 1:1 customer care support to help maximize member confidence. One Technologies is headquartered in Dallas and was founded in October 2000. For more information, visit his website at: onetechnologies.net.

contact: scott timsstims@piercom.com

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