How MagnifyMoney Gets Paid

Advertiser Disclosure

Personal Loans

Best Egg Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

Best Egg personal loan rates and terms
APR range5.99% - 29.99%
Loan amounts$2,000 - $35,000
Loan length36 or 60 months
Minimum credit score640
Fees
  • Origination fee: 0.99% - 6.99%
  • Late payment fee: $15
  • Prepayment penalty: None
Time to fundingCan be funded as soon as the next business day.

Who’s the best fit for a Best Egg personal loan?

Best Egg is an online lending platform that offers low-APR loans for borrowers who meet certain income and credit requirements. It may be a good option for good-credit borrowers, especially since Best Egg offers fast funding and no prepayment penalty. That means Best Egg can be a great option for those who need to access emergency funds but who plan to pay off their loan early to minimize costs.

Even if you meet Best Egg’s credit requirements, though, be sure to shop around. There are lenders in the marketplace who offer prime borrowers better rates and don’t charge origination fees like Best Egg does.

Borrowers with bad credit may not qualify for a Best Egg loan. Those who do may see rates that are higher than on your typical credit card. If you don’t meet the credit or income requirements to borrow from Best Egg, consider:

APR

5.99%
To
29.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

0.99% - 6.99%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

People looking for a process that is fast and straightforward can’t go wrong when applying through Best Egg for a personal loan. ... Read More


The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

*Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

Pros and cons of a Best Egg personal loan

ProsCons
  • APR as low as 5.99%. Applicants with excellent credit may be able to secure a low rate on a personal loan.
  • Fast funding. It takes about 1-3 business days for the entire borrowing process, from application to funding.
  • Borrow twice. You may be eligible to take out a second Best Egg loan, as long as your balance doesn’t exceed $50,000 total.
  • Origination fees. Not all lenders and online lending platforms charge origination fees on personal loans, but Best Egg does, at 0.99% - 6.99%.
  • Credit requirements. Best Egg requires that borrowers have a credit score of at least 640.
  • Income requirements. The best rates available from Best Egg require an income of at least $100,000.

Best Egg consumer reviews

A good way to determine if a lender is a good fit for your needs is to look up reviews from people who have already borrowed from them. One such place to find consumer reviews is on LendingTree.

Read Best Egg reviews on LendingTree

Best Egg’s customer reviews are overwhelmingly positive, focusing on the fast funding and excellent service. Still, there are a handful of negative reviews that cited high fees and confusion surrounding loan rejection despite a good credit score.

Best Egg personal loan requirements

To qualify for a personal loan from Best Egg, you must:

  • Meet the minimum credit requirement with a credit score of 640 or higher.
  • Verify your income and identity with proper documentation.
  • Evaluate your debt-to-income ratio.

Best Egg reserves its lowest interest rates for borrowers with a credit score of 640 or higher and an income of $100,000 or more.

Applying for a personal loan from Best Egg

  1. Fill out Best Egg’s online application for preapproval, providing information on your housing, income and employment. This application takes only a few minutes and lets you check potential interest rates without affecting your credit score.
  2. If you’re happy with the offered rate and terms, you can submit a formal loan application. During the formal application process, Best Egg may conduct a hard credit check, which will affect your credit score.
  3. Depending on your bank, your funds will be available in about one to three business days.

Best Egg FAQ

You can apply and get your personal loan funds on the same business day, but the process can take up to three business days.

Yes, Best Egg does not charge a prepayment penalty for paying off your loan early.

Yes, Best Egg is an online lending platform that offers competitive APRs as low as 5.99% for borrowers who meet their strict income and credit score requirements.

However you see fit. Best Egg loans can be taken out for everything from credit card consolidation to loans for home improvement and major purchases (like weddings).

For most consumers, the maximum loan amount is $35,000. Some customers, however, will be able to qualify for a maximum loan amount of $50,000. The minimum loan amount is $2,000.

Yes. To qualify with Best Egg, you’ll need a minimum credit score of 640. For the lowest possible APR, you’ll need a credit score of at least 640 and income of at least $100,000.

APRs for Best Egg loans range from 5.99% – 29.99%, and loans come with an origination fee between 0.99% - 6.99%. Four-year loans will have an origination fee of at least 4.99%.

Yes. Best Egg allows customers to have two loans at one time so long as the total between the two loans doesn’t exceed $50,000.

Best Egg loans are unsecured personal loans, which means nothing is put up as collateral.

Best Egg doesn’t specify income requirements to qualify for a loan. However, Best Egg reserves the lowest possible APRs for borrowers with an annual income of $100,000 or higher.

Yes, as there are different loan requirements for a few states. In Massachusetts, the minimum loan amount is $6,500; in New Mexico and Ohio, the minimum loan amount is $5,000; and in Georgia, the minimum loan amount is $3,000.

Alternative personal loan options

Upgrade vs. Best Egg

APR

6.94%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.90% - 8.00%

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More


Personal loans made through Upgrade feature APRs of 6.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.

Upgrade offers a similar product to Best Egg, except their maximum APR is much higher and their minimum credit score requirements much lower. This means that you’re likely to have an easier time getting approved for a loan from Upgrade, but that your APR is likely to be higher if you have a lower credit score.

LendingClub vs. Best Egg

APR

10.68%
To
35.89%

Credit Req.

Not specified

Terms

36 or 60

months

Origination Fee

2.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More

LendingClub is a peer-to-peer lending marketplace. Similar to Upgrade, LendingClub allows borrowers with lower credit scores to access personal loans more easily than Best Egg. If your credit score is less than 620, LendingClub is preferable to Upgrade, though the maximum interest rates are close. However, LendingClub has a lower maximum origination fee than both Upgrade and Best Egg, meaning it could be a more affordable option.

Marcus by Goldman Sachs® vs. Best Egg

APR

6.99%
To
19.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

Marcus by Goldman Sachs® — unlike Best Egg — charges no origination fee. Their maximum term length also allows you to stretch out your loan, potentially lowering your monthly payments. Remember, however, that when you stretch out your loan, you usually end up paying more in interest overall even if your monthly payment is lower.

Get Personal Loan Offers
Up to $50,000

$

Won’t impact your credit score

How MagnifyMoney Gets Paid

Advertiser Disclosure

Personal Loans

Personify Financial Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

Personify Financial personal loan rates and terms
APR range35.00% - 179.99%
Loan amounts$500 - $15,000
Loan length6 to 48 months
Minimum credit scoreNot specified
Fees
  • Origination fee: 0.00% - 5.00%
  • Late payment fee: Not Specified
  • Prepayment penalty: None
Time to fundingOne to two business days, depending on the loan program you utilize and the state in which you live.

Who’s the best fit for a Personify Financial personal loan?

Personify Financial offers high-APR loans to borrowers with bad credit who can’t get approved for traditional personal loans with better terms. So if you have fair or poor credit and you’re in desperate need of a small loan to tide you over, you may qualify for a loan through Personify Financial. Just keep in mind that loans with a high APR are incredibly expensive to borrow.

Still, it’s best for bad credit borrowers to exhaust their other borrowing options, including credit union loans and secured personal loans, before taking out a personal loan with a triple-digit APR.

If you have a good or excellent credit score, Personify Financial is not for you. You’ll be able to find better interest rates with other lenders.

APR

35.00%
To
179.99%

Credit Req.

Not specified

Terms

6 to 48

months

Origination Fee

0.00% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Pros and cons of a Personify Financial personal loan

ProsCons
  • Flexible credit requirements. Personify Financial lends to bad-credit borrowers.
  • No prepayment penalty. You can pay off your loan faster without incurring additional charges.
  • Fast funding. You may be able to get your money within one business day.
  • Very high APRs. Personify Financial loan APRs can be as high as 179.99%.
  • Origination fee. Borrowers may be charged an origination fee of up to 5% of the loan amount.
  • Limited availability. Personify Financial is not available in all states.

Eligibility requirements

Personify Financial doesn’t specify a minimum credit score requirement on its website. Instead, the Personify website notes that “the approval process considers many factors besides your credit history.”

Personify Financial isn’t available in every state. Residents of the following 28 states can apply:

Applying for a personal loan from Personify Financial

  1. Fill out Personify Financial’s online application. You’ll be asked for basic information like your name, email address and zip code.
  2. Personify Financial will do a soft pull on your credit to determine your loan offers, which will not affect your credit score.
  3. If you decide to formally apply, Personify Financial will conduct a hard credit check, which can affect your credit score.
  4. Personify Financial may request additional documents to verify your income, employment or identity.
  5. If approved, you’ll receive your funding within one to two business days.

Personify Financial consumer reviews

On LendingTree, which owns MagnifyMoney, consumer reviews of this lending agency are mixed. Most notably, reviewers make note of the high APRs and easy borrowing process.

Read Personify Financial reviews on LendingTree

Before working with any lender, be sure to carefully read reviews from current and previous borrowers. These reviews can give you a glimpse into what your experience may be like.

Personify Financial FAQ

Personify Financial offers unsecured personal loans, which are lump-sum loans with fixed interest rates that are repaid in equal installments.

If approved, you can borrow between $500 and $15,000, depending on multiple factors, such as the state in which you live and your creditworthiness.

You can apply online from any computer, smartphone or tablet.

In some states, Personify Financial charges an origination fee worth 5% of the total loan amount you receive, as well as non-sufficient funds and late fees when applicable.

Once approved, you can receive funds within one to two business days, excluding weekends and holidays.

You can make payments via electronic funds transfer or through Personify’s online portal using your checking account, savings account or debit card. You can also send a check by mail.

Personify Financial does report to the credit bureaus, which means that any delinquency could affect your credit score. If you think you’ll miss a payment, call a Personify Financial specialist at 888-578-9546 to discuss your options.

Depending on your state of residence, these offers will either be through Personify Financial directly or through its partner, First Electronic Bank.

Alternative personal loan options

Affinity Federal Credit Union vs. Personify Financial

Affinity Federal Credit Union
APR

As low as 9.75%

Credit Req.

525

Minimum Credit Score

Terms

Up to 60

months

Origination Fee

No origination fee

APPLY NOW Secured

on Affinity Federal Credit Union’s secure website

Affinity Federal Credit Union offers personal loans that come with no origination fees, no prepayment penalties, and low fixed rates. ... Read More

A good place to start your search is credit unions, as they tend to offer lower interest rates. One credit union is Affinity Federal Credit Union, which offers personal loans starting at 9.75% APR.

In order to borrow a personal loan from a credit union, you must become a member. Each credit union has its own membership requirements. For Affinity Federal Credit Union, simply join one of the eligible clubs outlined on their website and maintain a $5 “share” in the credit union.

LendingPoint vs. Personify Financial

APR

15.49%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

LendingPoint offers personal loans from 15.49% to 35.99% APR — drastically lower than Personify Financial. But while LendingPoint works with borrowers in lower credit bands, it does require that applicants make at least $20,000 in income.

Besides the much more favorable APR, LendingPoint’s loan terms are similar to that of Personify Financial. Loan amounts are slightly higher, from $2,000 to $25,000, and loan lengths are slightly longer, at 24 to 48 months. Like Personify Financial, LendingPoint also offers fast funding, sometimes as soon as the next business day.

Finova Financial vs. Personify Financial

APR

18.00%
To
30.00%

Credit Req.

Varies

Terms

12 to 24

months

Origination Fee

Varies by state

SEE OFFERS Secured

on LendingTree’s secure website

Lender Disclosure

Terms and Conditions Apply. FINOVA RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet Finova's underwriting requirements. A borrower cannot be an active-duty service member of the U.S. Armed Forces (or a covered dependent under the Military Lending Act). Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and terms are subject to change at any time without notice and are subject to state restrictions. To check the rates and terms you qualify for, Finova conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull. Finova is an equal opportunity lender.

Another option is looking at secured loans. Many times this involves putting your car or another valuable item up for collateral, which means that you risk losing an asset if you default on the loan.

Plus, interest rates on auto title loans — where you put your car up as collateral — can be also high. If this is your only option, look to a lender like Finova Financial, which caps its interest rates at a comparatively low 30%.

Get Personal Loan Offers
Up to $50,000

$

Won’t impact your credit score

How MagnifyMoney Gets Paid

Advertiser Disclosure

News

Holiday Debt Averaged $1,381 in 2020, Reaching a 6-Year High Amid Pandemic

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

The holiday season is a time for celebrating and exchanging gifts with loved ones — which can often mean swiping credit cards or taking on loans in the process. About a third (31%) of all consumers took on debt to pay for holiday expenses this year, according to a December 2020 MagnifyMoney survey of 1,171 Americans. Holiday debt was defined as spending related to gifts, travel and entertainment.

Those who incurred holiday debt this year borrowed $1,381 on average. That’s up from $986 in 2015, an increase of nearly $400, or 40%, since we first started conducting this survey five years ago.

As the coronavirus pandemic continues to shape how we earn and spend money, fewer Americans racked up holiday debt than last year, but the ones who did — often millennials and parents of young children — borrowed more money than ever before.

See what else we uncovered in the report below.

Key findings

31% of Americans took on holiday debt, at $1,381 on average

Fewer Americans took on holiday debt to pay for gifts, travel and entertainment in 2020 than they did in 2019, at 31% versus 44%. However, those who did incur debt over the holidays borrowed more money on average. See how holiday debt has steadily increased since we began this survey in 2015:

“The pandemic has wrecked so many things for so many people, canceling birthday parties, vacations, family get-togethers and more,” said Matt Schulz, chief credit analyst at LendingTree. “Now, many people are likely trying to overdo it a bit for Christmas to make up for a crummy year. It’s easy to understand, but that spending can really clobber your budget.”

Borrowing money is an added cause of anxiety during the holiday season. Most (66%) consumers who borrowed money for the holidays are stressed about their debt. Among the most stressed were parents with young children and millennials, at 73% each. Americans in these demographic groups also took out debt at the highest rates.

Many borrowers want to leave holiday debt in 2020

The indulgent holiday season is commonly followed by resolutions of doing better in the new year. In fact, getting rid of debt is Americans’ most popular financial resolution for 2021, according to a recent MagnifyMoney survey.

Still, most consumers will likely not take advantage of debt payoff strategies like debt consolidation or balance transfers. Less than two in five (38%) consumers with holiday debt will try to consolidate their debt or shop around for a good balance transfer rate. For those who will not, the most common reason was not wanting to deal with another bank (20%).

Most people incurred holiday debt using credit cards

The majority (56%) of those who took on holiday debt used a credit card to finance their purchases. About half as many took out a personal loan for holiday spending.

Some borrowers turned to riskier sources: 18% of those who borrowed money to pay for holiday expenses financed their spending with a payday or title loan, up from 11% in 2019. Payday loans often come with triple-digit APRs and short repayment periods, leaving borrowers trapped in a cycle of debt they can’t repay. Auto title loans use a vehicle as collateral, putting borrowers at a high risk of having their car repossessed.

Plus, more than a fifth (22%) took on debt using a store credit card, which can come with sky-high interest rates.

9 in 10 of consumers with holiday debt won’t pay it off within a month

Of those who borrowed money to pay for holiday purchases, 89% say they won’t be able to pay off that debt in a month. Credit card users in particular are likely to pay interest on their holiday purchases, since they’ll be carrying a balance from month to month.

“That’s an awful lot of people carrying over balances for a while,” Schulz said. “That tells me that these folks aren’t just taking on debt for convenience’s sake or to run up rewards. They’re doing so because they don’t have any choice.”

Additionally, about a fifth (18%) of consumers with holiday debt said they only plan on making minimum payments on that debt.

According to MagnifyMoney’s credit card payoff calculator, it would take more than five years to pay off $1,300 making minimum monthly payments of $31 with an interest rate of 14.5%. Plus, you’ll pay more than $600 in interest — almost half the original debt itself — by the time you’re done paying it down, years after the holiday has ended.

It’s worth noting that many consumers could take even longer to pay off their debt and pay more in interest charges, since 23% of consumers who took on holiday debt noted their APR was 20% or more.

Personal loans are becoming more popular for holiday spending

Consumers are increasingly using personal loans to finance their holiday spending. More than one in four (27%) consumers who took on holiday debt this year said that debt came from a personal loan, up from 20% last year. That’s an increase from just 8% in 2015, when MagnifyMoney first conducted this survey.

“Personal loans are booming as an alternative to credit cards,” Schulz said. “They’re a good, simple option for folks who want to finance a purchase but don’t want to mess with a credit card.”

Borrowers with good-to-excellent credit may find personal loans to be a cheaper alternative to credit cards, since they typically qualify for lower APRs than they would with a credit card. Personal loans also have fixed APRs and are repaid in fixed monthly installments, giving borrowers a clear picture of when they’ll pay off their debt.

However, shoppers should be wary of using a personal loan to pay for unnecessary expenses like holiday purchases. While personal loans may sometimes be a better alternative to credit cards, it’s still best to budget your money and save up in advance to avoid paying financing charges like interest and loan fees on nonessential purchases.

Point-of-sale financing was popular among young Americans this holiday season

Nearly two in five (37%) Americans turned to point-of-sale companies like Affirm and Quadpay to break up their holiday purchases into smaller payments in 2020. About a fifth (21%) of consumers utilized special financing for multiple purchases this holiday season.

Point-of-sale financing, also known as “buy now, pay later,” lets consumers break their purchases into smaller installments upon checkout. These point-of-sale agreements are typically either interest-free installment plans or small unsecured loans, some of which carry APRs as high as 30%.

“Point-of-sale financing hit critical mass in 2020 and is likely here to stay,” Schulz said. “People like it because the payments are typically predictable and easier to understand than credit card payments, and there’s no risk of running up more debt after the loan is paid off.”

Americans under 40 were far more likely to utilize “buy now, pay later” agreements to finance their holiday purchases than their older counterparts, as indicated below:

  • Gen Z: 42%
  • Millennials: 51%
  • Gen X: 40%
  • Baby boomers: 14%

While some point-of-sale companies let you break your purchase into smaller, more digestible payments without charging interest, that’s not always the case. Some charge interest and late fees, both of which increase the cost of holiday shopping.

Who was most likely to incur holiday debt?

Those who lost income due to the pandemic

The coronavirus pandemic has been a source of financial stress for many Americans, and there’s no exception when it comes to holiday spending. Half of those who were laid off or furloughed due to the coronavirus pandemic took on holiday debt.

Consumers who lost income due to the coronavirus pandemic were more than twice as likely to take out holiday debt than people whose incomes were not affected by the pandemic.

Parents with young children

The holidays are a time of increased spending for many people, but parents with young children are hit particularly hard. Parents with kids under 18 were twice as likely to take on holiday debt than Americans with no children, at 43% and 22%, respectively.

“Parents with young children are always at risk of taking on more debt during the holiday season,” Schulz said. “There’s so much pressure from all sides to get just the perfect gift that often budgets are wrecked in a big hurry.”

Schulz also suggested that parents are overspending to make up for a tough year. 2020 has been particularly hard for young children and their parents alike, who have had to adapt to learning virtually, wearing masks and staying socially distant. While it makes sense that parents want to spend more money this holiday season, they should be wary of thwarting their budgets in the process.

More than a quarter (27%) of Americans surveyed said that their most expensive gift was bought for a child.

Millennials

More millennials took on holiday debt than any other age group, at 39%. That’s compared to 35% of Gen X, 30% of Gen Z and 17% of baby boomers.

“It’s no secret that millennials have been hit particularly hard by the pandemic,” Schulz said. “So many of them are already struggling with student loan debt, the costs of starting a family and other such financial headwinds that I’m not surprised to hear that many will be taking on more debt this holiday season.”

Click through to see previous versions of this annual report:

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,171 Americans, including 359 who incurred holiday debt. The survey was administered using a non-probability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.

We defined generations as the following ages in 2020:

  • Generation Z: 18 to 23
  • Millennial: 24 to 39
  • Generation X: 40 to 54
  • Baby boomer: 55 to 74

While the survey also included consumers from the silent generation (defined as those 75 and older), the sample size was too small to include findings related to that group in the generational breakdowns.

The survey was fielded Dec. 21-22, 2020.