Survey: Consumers Talk Financial Regrets, Credit Scores and Debt

By on February 23rd, 2022 in Industry Insights

Most Americans are in enough credit card debt, they would do anything to go back in time and change the outcome of their financial situation, according to new research.

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%).

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.

“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,” said Ohad Samet, founder of TrueAccord. “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 Americans, recovering from financial regrets starts with their credit score. 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.

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.

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%). 

“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,” added Samet. “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.”

TOP 10 FINANCIAL REGRETS AMERICANS HAVE

  1. Not starting a retirement plan while I’m young 51%
  2. Not paying attention to my credit score 43%
  3. Buying cheap goods 41%
  4. Defaulting on payments and ending up in debt collection 41%
  5. Overspending on credit cards that I can’t afford to repay 38%
  6. Buying a car without knowing what’s involved 37%
  7. Letting student debt accumulate 36%
  8. Getting locked into fixed interest rates 29%
  9. Not investing money while I’m young 26%
  10. Not buying a home/property while I’m young 25%

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