New Credit Sesame Data Shows Impact of Economy Amid COVID-19

Summary

• Study found that 71% of customers changed major life plans due to COVID-19
• 87% of customers changed spending habits
• One in five lost their job in the past 30 days

A new Credit Sesame survey of more than 1,000 Credit Sesame customers in early April 2020 found that the coronavirus has forced 71% of them to change major life plans, with 22% delaying a vacation, 10% delaying buying a house, 3% delaying a wedding, and 2% delaying a divorce. 

The study aimed to understand how the current climate is impacting finances and financial decision-making. Eighty-four percent (84%) of Credit Sesame customers (like two-thirds of Americans) are living paycheck-to-paycheck; 87% of customers have changed their spending habits, with 41% cutting back on ordering food for delivery or takeout.

We also discovered that one in five customers lost their job in the past 30 days and, of those respondents, 34% have less than $100 in savings. Fifty-nine percent (59%) believe they will qualify for the stimulus check, with 21% of those respondents planning to put at least some of that money into savings. 

Additional COVID-19 Survey Insights

• COVID-19 is forcing some Americans to delay major life plans – 71% had to hit the brakes
• • • 22% delayed a vacation
    • 13% delayed a relocation
    • 10% delayed buying a house
    • 3% delayed a wedding while 2% delayed a divorce
    • 1% delayed trying to get pregnant/adopt
    • 20% delayed other plans
• How Americans are trying to save right now
• • • 41% are cutting back on ordering food for delivery/takeout
    • 11% canceled a video streaming service like Netflix
    • 7% canceled a music streaming service
    • 6% canceled a newspaper/magazine subscription
• Job loss is real
• • • 20% lost their job in the thirty days prior to the survey conducted
      • Of that cohort, 34% had less than $100 in savings
• Filing for unemployment hasn’t gone so smoothly 
• • • Of the 12% who have filed for unemployment in the last 30 days, a shocking 61% experienced challenges in applying for unemployment, including:
      • Difficulty navigating the online application
      • Delayed responses
• 59% of respondents think they will qualify for the stimulus check, here’s how they plan to spend the money:
• • 21% plan to put at least some of the payment towards savings 
  • 19% plan to put it towards rent while 6% plan to spend it on their mortgage payment
  • 18% will put it towards credit card debt
  • 19% will spend it on groceries 
  • 2% plan to put it towards their student loan payment
  • 1% intend to spend it on COVID-19 related medical expenses and 4% on non COVID-19 related medical expenses

For more helpful information and resources related to COVID-19 and its economic impact, be sure to refer to our Guide to Managing Your Finances and Protecting Your Credit During the Coronavirus Pandemic.

Credit Sesame conducted this survey of 1,095 of its active customers from March 31-April 1, 2020.