Car loans and leases were the biggest luxury expenses for both debtors and non-debtors. However, few respondents said they would be willing to cut back. Only 26% of those in debt said they would be willing to cut their spending in half, versus 22% of those not in debt.
Average annual spending by debtors: $5,096
Average annual spending by non-debtors: $5,262
Percentage of debtors willing to cut spending in half: 26%
Percentage of non-debtors willing to cut spending in half: 22%
Leisure travel, not a necessity by any means, cost those in debt an average of $2,211 per year. However, only 1 in 3 respondents who were in debt were willing to cut their travel budget in half to save money.
Average annual spending by debtors: $2,211
Average annual spending by non-debtors: $3,188
Percentage of debtors willing to cut spending in half: 30%
Percentage of non-debtors willing to cut spending in half: 26%
Respondents to the poll, both those in debt and not in debt, reported being the most willing to cut their dining and takeout food expenses by half. 48% of debtors and 44% of non-debtors would be willing to do so.
Average annual spending by debtors: $2,186
Average annual spending by non-debtors: $2,023
Percentage of debtors willing to cut spending in half: 48%
Percentage of non-debtors willing to cut spending in half: 44%
People with credit card debt spent slightly more per year on clothing, shoes, and accessories than those not in debt — $1,892 versus $1,515. They were also slightly more willing to cut back on this expense.
Average annual spending by debtors: $1,892
Average annual spending by non-debtors: $1,515
Percentage of debtors willing to cut spending in half: 35%
Percentage of non-debtors willing to cut spending in half: 31%
Cell phones are a must-have item, even for those in credit card debt. Debtors reported spending an average of $1,629 per year on cell phone services and upgrades, while only 25% of survey respondents said they'd be willing to cut their spending in half.
Average annual spending by debtors: $1,629
Average annual spending by non-debtors: $1,326
Percentage of debtors willing to cut spending in half: 25%
Percentage of non-debtors willing to cut spending in half: 19%
Out-of-home entertainment was less important to survey respondents — 36% of debtors and 33% of non-debtors reported being willing to cut their spending on this expense in half.
Average annual spending by debtors: $1,538
Average annual spending by non-debtors: $1,232
Percentage of debtors willing to cut spending in half: 36%
Percentage of non-debtors willing to cut spending in half: 33%
Overall, respondents didn't want to cut back on their fitness expenses. Only 28% of debtors and 18% of non-debtors said they'd be willing to pay half of what they're spending now.
Average annual spending by debtors: $1,385
Average annual spending by non-debtors: $1,317
Percentage of debtors willing to cut spending in half: 28%
Percentage of non-debtors willing to cut spending in half: 18%
Average spending on subscription services like Netflix, Amazon Prime Video, Hulu, and Spotify was the second-lowest on this list — $1,198 per year for debtors and $1,083 per year for non-debtors. More than 1 in 3 respondents for both groups said they'd be willing to cut their bill in half.
Average annual spending by debtors: $1,198
Average annual spending by non-debtors: $1,083
Percentage of debtors willing to cut spending in half: 39%
Percentage of non-debtors willing to cut spending in half: 32%
Respondents spent the least amount of money annually on personal care and beauty services, only $1,146 for debtors and $945 for non-debtors.
Average annual spending by debtors: $1,146
Average annual spending by non-debtors: $945
Percentage of debtors willing to cut spending in half: 23%
Percentage of non-debtors willing to cut spending in half: 20%
- Read more:
- What average Americans spend in a year in 22 major cities
- 10 Ways To Cut Spending That Could Save You Over $1,000 A Month
- I decided to organize my money using Marie Kondo's decluttering strategy, and ended up paying off $10,000 of debt
- How to consolidate credit card debt to streamline your payments and lower your interest rate
