According to a new study of more than 1,040 American homeowners by
Discover Personal Loans, 72 percent have delayed making improvements or
repairs to their home due to their financial situation, with 42 percent
delaying the project for more than a year. However, when asked whether
they were prepared, nearly 54 percent of respondents said they are
financially prepared to cover an unexpected home repair.
When asked how much money they have available to pay for an unexpected
repair, nearly three in five (59%) homeowners said they don’t have
enough funds to pay for a home repair that costs more than $5,000. That
number goes up among millennial homeowners (aged 18-34), with 79 percent
not being able to cover the same amount.
According to The True Cost of Home Improvement report by Home Advisor,
homeowners who don’t have at least $5,000 may not be able to cover some
of the most basic home repairs. Larger repairs such as installing an AC
unit or new roof can cost up to $10,000 and over $12,000 1 respectively.
In addition, planning and budgeting for home repairs appears to be a
challenge for homeowners surveyed. Nearly one-third (30 percent) of
homeowners said that their last unexpected home repair cost more than
what they expected.
“The survey indicates that a significant majority delay home repairs and
remodels because of limited savings,” said Dan Matysik, vice president
of Discover Personal Loans. “Unfortunately, these delays may cost
homeowners more in the long-run with additional repairs. If an
unexpected home expense arises, homeowners should consider looking into
fixed-rate funding options that provide quick access to funds, such as
personal loans, to help complete their projects.”
Interestingly, responses to the survey questions were fairly similar
across income brackets. For example, 50 percent of homeowners that
earned less than $40,000 delayed a home improvement or repair for more
than a year as compared to 46 percent among those making $40,000 to
$80,000. Additionally, 34 percent of homeowners that earned more than
$80,000 delayed a home improvement or repair for more than a year.
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
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, America’s 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 Global Network comprised of Discover
Network, with millions of merchant and cash access locations; PULSE, one
of the nation’s leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in 190
countries and territories. For more information, visit www.discover.com/company.
All figures, unless otherwise stated, are from YouGov Plc. Total sample
size was 1045 adults who are homeowners. Fieldwork was undertaken
between 22nd – 24th May 2018. The survey was carried out online. The
figures have been weighted and are representative of all US adults (aged
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