Vacation spending puts 74% of Americans in debt: Survey

Summer vacations are a popular way to relax, but they can also place serious stress on the average American’s budget, according to survey released this week by financial planning company LearnVest.

Continue Reading Below

Nearly three-fourths (74%) of Americans have gone into debt to cover the costs of a vacation, according to a survey of 1,000 U.S. adults conducted by Wakefield Research. In total, Americans incur an average debt of more than $1,100 per vacation.

More on this...

“Having a financial plan is key to avoiding debt when you go on vacation,” LearnVest founder Alexa von Tobel said in a statement.

Of those surveyed, 55% said they didn’t account for their vacation spending in their annual budget, while 66% said they spend more on a week-long vacation than they do on a month of rent. The problem is worse among Millennials, nearly half of whom (49%) said they were willing to take on debt for a vacation compared to just 18% of Boomers.

While most vacations wrap up in two weeks or less, the financial impact of vacation-related spending can last far longer. Americans spend an average of 10% of their annual income on trips, and their budgets require an average of six months to fully recover, according to the survey.

What do you think?

Click the button below to comment on this article.