Whether you're in credit card debt or not, there are certain things you may not want to skimp on. Whether it's splurging on that yearly vacation, going out to eat, or getting the latest iPhone, both those in debt and not in debt spend about the same per year on certain luxury expenses, according to a new report.
Results of a recent survey by CreditCards.com revealed the spending habits of those in credit card debt and not in credit card debt in 9 categories. The categories were all classified as "luxury" expenses, and the survey analyzed responses from 2,482 adults. The survey also discovered the percentages of those in debt and not in debt that would be willing to cut their yearly expenses by 50% in each category.
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.
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.
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.
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.
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.
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.
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 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.
Respondents spent the least amount of money annually on personal care and beauty services, only $1,146 for debtors and $945 for non-debtors.