Discover Personal Loans Survey: Majority of Personal Loans Used by Financially Healthy Gen Xers and Boomers

RIVERWOODS, Ill.–(BUSINESS WIRE)–Whether financing a major life event, handling an unplanned expense or
consolidating debt, a personal loan can help provide consumers with
control over their finances. In fact, people in solid financial standing
agree. Sixty percent of those who have used a personal loan
graded themselves as having good or excellent financial health,
according to a survey commissioned by Discover Personal Loans.

Survey results also found that many who have used a personal loan in the
past would consider using one again. More than half of those who have
used a personal loan in the past and grade their overall financial
health as excellent or good say they are very or somewhat interested in
using a personal loan in the future.

“After seeing how beneficial personal loans can be, it’s not surprising
that people in good financial health recognize the value in using them
more than once,” said Dan Matysik, vice president of Discover Personal
Loans. “A personal loan can be an effective option to help people
simplify finances and take control of their financial future.”

The survey results show that Generation X, those between the ages of 35
to 54, and baby boomers, those ages 55 and older, use personal loans
more than millennials, those ages 18 to 34:

  • 54 percent of baby boomers have used a personal loan
  • 49 percent of Gen Xers have used a personal loan
  • 36 percent of millennials have used a personal loan

The majority of Gen Xers, 61 percent, and baby boomers, 67 percent,
picked a personal loan because of the interest rate, followed by the
trustworthiness of the lender, according to the survey.

When asked to rank several categories for which they would most likely
use a personal loan, 53 percent of respondents said they would use one
for a major life event or purchase such as a wedding or car, 31 percent
said they would use it for debt consolidation or something else, and 17
percent said they would use it for an unplanned expenditure like a major
medical expense.

“When it comes to a personal loan, everyone’s situation is different.
Personal loans are a flexible financial tool that can be tailored to fit
a borrower’s individual needs,” said Matysik.

About the Survey

The national survey of 2,000 adults was commissioned by Discover
Personal Loans and conducted by Rasmussen Reports, an independent survey
research firm (http://www.rasmussenreports.com),
March 11- 15, 2016. The margin of sampling error was+/- 2 percentage
points with a 95% level of confidence, except for questions 13-17 for
which the margin of sampling error is +/- 3 percentage points.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in US
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, Americas cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts and certificates of deposit through its direct banking
business. It operates the Discover Network, with millions of merchant
and cash access locations; PULSE, one of the nations 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.

Survey Results From Rasmussen Reports