ATLANTA, Sept. 26, 2019 /PRNewswire/ -- While debt
has traditionally had a negative connotation, many people now see
it as a valuable tool to help them responsibly manage their
finances. In fact, a new 2019 LightStream survey conducted by
Wakefield Research found that 79% of Americans with good credit
(Credit Score: 660+) believe taking on debt purposefully can help
them accomplish their goals.
Debt is a financial reality for many Americans. More than one in
four good-credit Americans (28%) are currently carrying debt that
is not associated with auto, mortgage, business or student loans,
averaging $19,833. Americans with
credit scores of 800+ are carrying the most debt, averaging
$22,779. However, not all debt is the
result of frivolous spending, particularly when the decision to use
it is made in a conscious, values-driven way with consideration for
one's overall financial health and capacity. LightStream calls this
"purposeful debt."
LightStream's survey found that most people with good credit
would not take on purposeful debt for just any reason. For many,
debt is accrued for their wellbeing or the wellbeing of their loved
ones. Common reasons to take on debt include costs such as
orthodontics, elective medical procedures and fertility treatments
(39%); care for aging family members by paying for a nursing home
or in-home assistance (31%); and life moments such as a wedding
(13%) or a divorce (7%).
"While we would never encourage someone to spend beyond their
means, incurring purposeful debt can be a valuable financial tool
when used to achieve specific goals," said Todd Nelson, LightStream senior vice president
of strategic partnerships. "But how you manage your debt is just as
important as why you incur it. Many of our customers that used
credit cards to pay for large life expenses are eager to eliminate
their debt as quickly and efficiently as possible."
LightStream offers the following tips to take on and manage
purposeful debt:
- Budget, budget, budget: Inventory your debts so you know
who you owe, and the interest costs you are paying. Calculate to
make sure your income can support the added expense. Make sure that
as you plan, you include all of assets you have built through
savings, home equity and other earnings. Avoid spending all your
savings as this could cause financial hardship in a future
emergency. Investopediai reports that "most
financial experts end up suggesting you need a cash stash
equal to six months of expenses." 1 With a clear
financial picture, you can determine how much debt can be
eliminated by tapping existing resources and how much additional
financial assistance may be necessary to reduce carrying costs and
meet your goals.
- Lay the groundwork: 89% of those surveyed with good
credit say they would prepare before taking on purposeful debt.
Almost one in two would check their credit score (47%). Many also
say they would consult a financial professional (27%), seek advice
from a family member (23%), and/or research company rates and
reviews online (25%).
- Consolidate your debt: "Managing debt can seem
daunting, but a cost-reducing solution like a debt
consolidation loan is a great option," continued Nelson. "It allows
borrowers to immediately pay off high-interest debt at a lower,
fixed interest rate."
People often overlook debt consolidation financing due to
misconceptions, such as thinking it is expensive (23%) or that it
can take months to get approval (19%). In fact, if you have good
credit obtaining a debt consolidation loan can be a fast, simple
process that saves money, with interest rates that can be much
lower than those charged on credit cards or other financed
purchases. It also helps reduce the time frame for repayment and
streamlines financial management by reducing the number of monthly
payments.
For consumers who want to manage their purposeful debt with a
debt consolidation loan, the process can be simple and quick.
"Within 24 hours, I received a response," LightStream customer
Melissa Z. said. "It took me less than five minutes to sign up, and
I saved an enormous amount of money on all my credit card interest
rates."
For more information about debt consolidation, visit
LightStream.com/PurposefulDebt
About LightStream, a division of SunTrust Bank
LightStream is a national online lending division of SunTrust Bank,
which is focused on enhancing the financial confidence of its
clients. LightStream provides unsecured loans to good-credit
customers for practically any purpose, including debt
consolidation. Financing is available in all 50 states; people need
not have a SunTrust account in order to apply. Through a simple
online application process, funds can be provided with no fees, on
the same day. Click here for important disclosures, including a
payment example as well as information on same day funding,
LightStream's Rate Beat Program and its $100 Loan Experience Guarantee.
About SunTrust Banks, Inc.
SunTrust Banks, Inc. (NYSE:
STI) is a purpose-driven company dedicated to Lighting the Way to
Financial Well-Being for the people, businesses, and communities it
serves. SunTrust leads onUp, a national movement inspiring
Americans to build financial confidence. Headquartered in
Atlanta, the Company has two
business segments: Consumer and Wholesale. Its flagship subsidiary,
SunTrust Bank, operates an extensive branch and ATM network
throughout the high-growth Southeast and Mid-Atlantic states, along
with 24-hour digital access. Certain business lines serve consumer,
commercial, corporate, and institutional clients nationally. As of
June 30, 2019, SunTrust had total
assets of $222 billion and total
deposits of $161 billion. The Company
provides deposit, credit, trust, investment, mortgage, asset
management, securities brokerage, and capital market services.
Learn more at suntrust.com.
Survey Methodology
The LightStream Survey was
conducted by Wakefield Research (www.wakefieldresearch.com) among
1,000 nationally representative US Adults ages 18+, between August 9th and August 15th, using an
email invitation and an online survey. Quotas have been set to
ensure reliable and accurate representation of the U.S. adult
population, ages 18+.
Results of any sample are subject to sampling variation. The
magnitude of the variation is measurable and is affected by the
number of interviews and the level of the percentages expressing
the results. For the interviews conducted in this particular study,
the chances are 95 in 100 that a survey result does not vary, plus
or minus, by more than 3.1 percentage points from the result that
would be obtained if interviews had been conducted with all persons
in the universe represented by the sample.
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https://www.investopedia.com/articles/personal-finance/040915/how-much-cash-should-i-keep-bank.asp
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SOURCE SunTrust Banks, Inc.