Consumer Payment Card News

Most Americans Have a Fear of Debt Nevertheless Carry a Butt Load of Cards

New research reveals a large percentage of consumers worry about the mismanagement of credit cards, they are simultaneously open to a healthy amount of debt. Consumers recognize the necessity of credit, but have real concerns about its sometimes confusing terms.  wallet-cash-credit-card-pocket

The study by Affirm delved into the nuances surrounding consumers’—especially millennials—relationship with debt and credit.

Key Findings:

• 65 percent of respondents have an actual fear of debt
◦ Almost a third (32 percent) are fearful because they don’t know how long it would take to pay off

• Consumers think of their spending in defined time increments:
◦ 93 percent plan their spending weekly, twice monthly or monthly
◦ 42 percent of millennials (ages 22 – 34) plan their spending on a weekly basis
◦ Only 5 percent said they don’t plan their spending at all

• Nearly 3 out of 4 (72 percent) respondents who have carried a credit card balance have worried about how much their purchases would end up costing in total (including interest)

• 46 percent of respondents who have carried a credit card balance have enjoyed purchases less due to carrying that balance

• 87 percent of respondents expressed interest in a simple way to pay for large purchases over time that was not a credit card

◦ 68 percent of these respondents cited “knowing exactly how much I’ll owe and when, including interest,” as the most appealing element of a simple credit card alternative

To find out more about Affirm, visit Affirm.com.

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