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Discover Personal Loans Survey: More Than Half Of Americans Consider Themselves Financially Savvy, Yet 61 Percent Have Used Savings To Cover Recent Monthly Costs

August 06, 2015

RIVERWOODS, IL, August 6, 2015 –Americans recognize the value of saving and paying off debt, yet many are not able to contribute to these goals as much as they would like. A recent survey commissioned by Discover Personal Loans shows while 84 percent feel they are financially better off or in the same situation compared to last year, 40 percent have cut back on the amount they put into savings, and almost as many (38 percent) were saving to pay off debts.

When asked to rank various ways to fund an unforeseen emergency expense of $7,000, more people said they would consider paying for an emergency expense by using their savings or putting it on a credit card than would take out a personal loan or other type of loan.

"Although most people are not aware of them, personal loans can be a great option to help people budget to cover expenses, consolidate high interest debt, and take control of their finances so they can continue to save," said Dan Matysik, Vice President, Personal Loans. "Consumers should research all of the financial options available before tapping into savings."

Americans prioritize saving and paying down debt over spending, but the reality is that many aren't saving as much as they'd like:

  • When faced with unforeseen expenses, 71 percent of respondents would tap into savings to cover it.
  • One-fifth of survey respondents said they wished they planned better to have emergency savings on hand
  • One quarter wished they planned better for retirement.
  • 60 percent of respondents said they used their savings to pay monthly bills and expenses in the past five years.

The national survey of 1,513 consumers, ages 18 and older, was commissioned by Discover and conducted by Instant.ly, an independent survey research firm (www.instant.ly), in May 2015. The maximum margin of sampling error was ±3 percentage points with a 95 percent confidence level.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.

Media Contact:

Discover
Susan J. Diaz de Leon
224-405-5344
Susandiazdeleon@discover.com