Nearly Half of Pet Owners Have Been in Debt for Their Pet

Pets provide loyal, loving companionship ─ maybe that’s why 69% of Americans own a pet. But between recurring costs like food and unexpected expenses like emergency vet visits, the cost of pet ownership can add up. For some pet owners, that means turning to credit cards or personal loans to finance pet expenses.

Nearly half (47%) of pet owners have gone into debt for their pet, up from 36% in 2019, according to a September 2020 LendingTree survey of 1,378 pet owners. See what else we learned about pet-related debt and spending in the analysis below.

Key findings

• More pet owners are going into debt for their pets when compared with last year. Nearly half (47%) of pet owners in this year’s survey have had pet-related debt, up from 36% in 2019.
• A third of pet owners said their pet-related spending has increased during the coronavirus pandemic. Twice as many pet owners said they’re spending more on their pet (34%) versus spending less on their pet (17%). About half of all pet owners said that their spending hasn’t changed.
• People tend to underestimate the cost of pet ownership. Sixty-two percent were shocked by how much money it costs to own a pet, and 59% of pet owners were caught off guard by an unexpected medical expense.
• Pet owners turn to credit cards to finance emergency medical expenses. Two in five (42%) pet owners would turn to their credit card should an emergency pet expense arise, one in four (26%) would use cash and one in five (21%) would tap savings, avoiding debt.
• Cat owners experience the same financial burden as dog owners. When asked how much they spent on their pets, how much pet-related debt they have and if they were shocked by the cost of pet ownership, cat owners and dog owners had consistent answers across the board.

More pet owners are taking out pet-related debt in 2020

When you adopt a pet, you assume financial responsibility for them. While you can account for recurring pet expenses like food and vaccinations in your monthly budget, it’s harder to predict pet expenses like emergency vet visits.

When a costly pet expense crops up, many pet owners turn to debt to cover the cost. Nearly half (47%) of pet owners said they went into debt for their pet in this year’s survey, compared with about a third (36%) of pet owners in 2019. That’s an increase of 31% in just one year.

Our survey also found that:

• Of those currently in debt over their pets, one in five (19%) owe at least $1,000.
• About two-thirds (65%) of those who have been in debt for their pet regret paying for the expense that caused the debt.
• Still, 80% of those who have had pet debt would still be willing to get another pet.

Baby boomers are far less likely than younger generations to go into debt for their pets — just under a quarter of pet owners of this generation have done so. In contrast, two-thirds of Gen Xers and about half of millennials who own pets have taken out pet-related debt.

Baby boomers are also the least likely to pay for a monthly subscription box, like Barkbox, for their pet. Just 1% of baby boomers utilize this service, compared with pet owners among younger generations: Gen Z (17%), millennials (13%) and Gen X (10%).

34% of pet owners are spending more on their pets during the pandemic

Many Americans are spending more time at home to avoid catching or spreading the coronavirus. For some, having a furry companion makes being isolated at home a little more tolerable. Our survey found that pet spending has stayed the same or increased during the pandemic for most pet owners.

A third (34%) of pet owners are spending more on their companions now than they did before the coronavirus pandemic, while about half (49%) of pet owners are spending the same as they did before the pandemic began. Just 17% said they are spending less on their pets during this time, despite the fact that many Americans’ financial situations have changed for the worse due to the pandemic.

The coronavirus pandemic also affected the way that pet parents take on debt for their pets. Pet owners who experienced income loss due to the COVID-19 outbreak reported more pet debt than those whose wages stayed the same.

People generally underestimate the cost of owning a pet

There are some obvious costs when it comes to owning a pet, like food, toys and supplies like kitty litter. But when you adopt a furry friend, it’s easy to overlook recurring costs like grooming and medications, which can add up over time.

The majority of pet owners (62%) were at least somewhat shocked upon finding out how much owning a pet actually costs. Two in five (41%) pet owners spend $500 or more per pet every year, and about one in six (16%) spends $1,000 or more per pet annually.

And if you’ve ever fretted over a vet bill, you’re not alone: A little more than half (53%) of pet owners have been worried about pet-related expenses.

Credit cards are the preferred payment method in an emergency

The majority (59%) of pet owners have had an unexpected medical expense for their pet, and most said it’s happened more than once. Of those who had an emergency vet expense, 47% charged the bill to a credit card.

When we asked all pet owners how they would pay for an emergency expense, they answered similarly:

Two in five pet owners have pet insurance, which can help mitigate the cost of emergency vet visits. Of those without insurance, 27% have regretted not insuring their pet.

Cat owners experience the same financial strain as dog owners

It’s generally thought that owning a cat is less expensive than owning a dog, but that may not necessarily be true. Our survey found that cat owners felt the same as dog owners when it comes to pet-related expenses across all financial aspects of pet ownership:

Methodology

LendingTree commissioned Qualtrics to conduct an online survey of 2,011 Americans, which included 1,378 pet owners. The survey was fielded Sept. 4-11, 2020.

Generations are defined as the following ages as of September 2020:

• Gen Z are 18-23
• Millennials are 24-39
• Gen X are 40-54
• Baby boomers are 55-74