Over the past few years, runaway inflation has pressured consumers to rely on additional debt to maintain their current lifestyle. According to Experian, overall debt levels increased 4.5% to $16.84 trillion.
In percentage terms, credit card and personal loan debt grew the most in 2023, increasing by 16.3% and 21.3%, respectively.
Today, the typical household has an average of $23,000 in non-mortgage loans, with approximately $6,000 in credit card debt.
With the new year in full swing, consumers will look for ways to manage the increased debt load and payments. This is a great time to introduce a debt consolidation promotion. Key target users will have either a high-balance credit card or a personal loan account.
According to a recent case study by Chimney, several key components made their Debt Consolidation program effective:
• A dedicated landing page explaining the program
• Interactive financial calculators so consumers can see their potential for savings
• Comprehensive advertising and communication outreach, including direct mail, ATM ads, digital lobby screens, branch posters, social media posts, and more.
At Westamerica, we always recommend both targeted emails and direct mail to help ensure offer delivery. Direct mail letters can also include pre-approved cashable checks, mini-applications, and support materials showing the power of debt reduction. Contact us for ideas and samples of effective direct mail.
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