Most US consumers are in enough credit card debt and they might do anything to “go back in time and change the outcome of their financial situation,” according to research shared by Fintech firm TrueAccord.
TrueAccord notes that a survey of 2,000 general population Americans “examined how they tackle their financial hurdles and found the average person owes $3,083 to credit card debt.”
Many respondents shared their financial regrets over the years, “from not setting up a retirement plan when they were younger (51%), to not paying close attention to their credit score (43%) and buying goods that were too cheap (41%).”
The update from TrueAccord further noted that three-quarters (76%) have “made an average of five financial decisions they regret in the past five years.” And those who are eager to get out of debt (76%) have “already planned their ‘debt free’ celebrations once they finished paying all their dues.”
Conducted by OnePoll and commissioned by TrueAccord, a digital debt collection company, the study revealed 77% of respondents “have lost an average of nine hours of sleep per week due to their financial woes.”
When they’re in a financial crisis, 63% of people will “turn to someone they trust — with half turning to their parents, 48% to their best friend and 46% to their primary bank.”
Overall, 87% of people credit their financial “wins” to the people “who had given them advice, while seven in 10 (71%) said they’ve learned from others’ financial mistakes.”
Ohad Samet, Founder of TrueAccord, stated:
“There are close to 80 million Americans with past due debt and most want to pay it off and move on with their lives. But that is exceedingly difficult, especially in a debt collection system that treats consumers poorly and is more interested in process than simplifying debt repayment. What we see more and more are consumers in debt who want to pay off their balances but are met with challenges of communicating with collectors, financial literacy and budget considerations that create roadblocks to being debt-free.”
For many US residents, “recovering from financial regrets starts with their credit score.” The update also mentioned that the average person “doesn’t understand the importance of their credit score until they’re 28 years old, but believe it’s better to start building a credit at 25 years old.”
Over four in five (84%) said “maintaining a good credit score is important to them, with nearly as many (81%) saying it’s even more important than their social lives.”
The update pointed out that respondents also “recalled the feelings they have when they see their credit card statements and when they’re about to make a payment.” When seeing their statements, 31% said they “feel confident and 24% feel fear.”
On the other hand, people feel “satisfaction (36%) and happiness (22%) when making a payment.”
The update further revealed:
“While 38% don’t plan on taking out any kind of loans in 2022, many are already making plans for loans in the year ahead — including credit card loans (34%), personal loans (33%) and mortgages (30%).”
Samet continued:
“For those who are able to repay their balances, there may still be a longer-lasting impact to their credit score that can be difficult to remedy and further inhibit financial stability. People will continue to borrow money when they need it, but what’s important is that they are informed on loan or credit terms and have a financial plan in place to ensure they’re making smart spending and repayment decisions. At the end of the day, though, getting into collections is often the result of trauma — loss of work, a healthcare crisis, and so on — many of them unexpected.”
For more details on this update, check here.