Credit card debt carries special stigma, survey finds

The average American household in debt owes $ 15,355 on credit cards – but don’t expect people to openly admit to having this type of debt. According to a NerdWallet survey, 70% of Americans believe there is more stigma surrounding credit card debt than any other type of debt.

NerdWallet commissioned an online survey, conducted by Harris Poll, of more than 2,000 adults. We asked about the stigma, embarrassment, and judgment around credit card debt and other types of debt, including student loans, mortgages, and medical bills. Here is what we found out about the psychology of debt in America:

  • 35% say they would be more embarrassed to tell others they have credit card debt, compared to 19% who are most embarrassed by any other type of debt.

  • 43% of people with credit card debt would feel judged if their family and friends knew how much credit card debt they owe.

  • 49% of Americans would be less interested in dating someone if they knew the person had credit card debt.

Credit card debt comes at an emotional cost too

Check out this www.paydaychampion.com site

More than a third of Americans (35%) would be the most embarrassed to tell people they have credit card debt rather than any other type of debt.

Americans say they are more embarrassed to recognize credit card debt than any other type of debt. Because credit card debt is heavily stigmatized – often referred to as “bad debt” – it’s no surprise that Americans feel the most shame about card balances, whether real or hypothetical. Our investigation revealed:

  • More than a quarter (28%) of Americans whose households earn less than $ 50,000 a year responded that they would be very embarrassed to tell others they had credit card debt, while 4 in 10 earned 100,000 USD or more says the same thing.

  • Two-thirds (65%) of parents with children under the age of 18 at home say they would be embarrassed to admit any type of debt, compared to half (50%) of people without children living at home.

  • Midwest (61%), a group that generally boasts high average credit scores and low debt balances, are the most likely to be embarrassed about having debt. Southerners (56%) are the next most likely to be embarrassed telling others they have any type of debt, but they have the lowest average credit scores and the lowest debt ratios. highest in the country.

NerdWallet resident credit card expert Sean McQuay says, “It’s no surprise that shaming debt isn’t necessarily effective in preventing or eradicating it. We see that the Midwest and Southerners are ashamed of above average debt, but with very different results. Shame does not guarantee success. The only way to pay off debt is to face it and make a plan to get rid of it. “

Those who judge also feel judged

More than 4 in 10 Americans with credit card debt (43%) say they would feel judged if family members and friends knew their credit card debt amount.

Only a quarter (25%) of Americans say they would judge a friend or family member for having credit card debt. But 32% of Americans with and without debt assume they would be judged for the same. Our study has found in several cases that people who are most afraid of being judged on themselves are more likely to judge others for debts. This was especially true for millennials, especially men:

  • More than half of millennials with credit card debt (55%) say they would feel judged if their friends and family knew how much debt they owed; more than a quarter of millennials (27%) say they would try a friend or family member for credit card debt. All other age groups were less likely to feel judged or judging.

  • Men (44%) who have credit card debt say they would feel judged if their family and friends knew how much credit card debt they have, compared to 41% of women who would. This gap was particularly noticeable for millennials with credit card debt: 65% said they would feel judged, compared with 46% of millennials. Millennials were also more likely. to judge family and friends for their credit card debt: 33% say they would be judgmental, compared to 23% of millennials.

“Many millennials came of age during the recession, which could explain their fear of credit cards and the potential debt that accompanies their improper use, ”says McQuay. “Because of this bias, it makes sense that Millennials view credit card debt as something that needs to be judged. But, just like being ashamed of debt, judging someone’s debt is rather unproductive. This does not solve the problem; he points to it.

Debt, the dating circuit breaker

Almost half of Americans (49%) say they would be less interested in dating someone if they knew the person had credit card debt.

Only 25% of Americans say they would judge loved ones for having credit card debt, but if they’re willing to be romantically involved with someone in such a position, that’s another story. Almost half of Americans say they would be less interested in dating someone if they knew the person had credit card debt. Here’s what our investigation found:

  • Half of American women (51%) would be less interested in dating someone if they knew the person had credit card debt, compared to 46% of men.

  • 62% of Americans 65 or older would be less interested in dating someone if they knew the person had credit card debt, compared to 46% of Millennials. Compare that with judgmental statistics: 55% of Millennials with credit card debt say they would feel judged by loved ones if they knew how much credit card debt they have, while only 26% of 65 years and older who have this debt would feel the same. judge.

“I think it’s interesting that the 65 and over age group seems more comfortable with their own debt while being more selective about potential partners in debt,” says McQuay. “While older Americans probably don’t judge younger people in debt, they don’t want that debt to become their problem through a romantic relationship.”

Methodology

This survey was conducted online in the United States by Harris Poll on behalf of NerdWallet from November 2-4, 2015, among 2,017 adults aged 18 and over, of whom 1,659 have credit cards. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For the full survey methodology, including weighting variables, please contact [email protected].

Read more

Singleton-Ruiz Housing Bills Pass Senate

Trenton – The Senate today passed two bills sponsored by Senators Troy Singleton and Teresa Ruiz. The bills would change the standards for lending to housing developers during the state of emergency and establish the “NJ Foreclosure Counseling Fund”. “Meeting the housing needs of our state is a key part …

Read More »

nCino Completes Acquisition of Mortgage Software Provider

SimpleNexus, a provider of homeownership software, is officially part of nCino. The Wilmington-based financial institution software company announced Monday that its acquisition of SimpleNexus is complete. The transaction, announced in November, was valued at $ 1.2 billion and consisted of approximately 12.75 million nCino common shares and approximately $ 270 …

Read More »

Private student loan refinancing rates plunge after weeks of steady increases

Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours. The latest …

Read More »

Munich Re calls for urgency as losses of nat re / insured cats hit $ 120 billion in 2021

Globally, the impacts of natural disasters in 2021 cost the economy a whopping $ 280 billion, of which reinsurer Munich Re says about $ 120 billion, or 43%, was covered by reinsurance protection. The $ 120 billion total is higher than some other estimates for the year, including Swiss Re’s …

Read More »

Healthcare workers: we are traumatized and we feel abandoned | Opinion

By Debbie White As health workers begin to see their hospitals being overwhelmed by this omicron wave, an increase that rivals that first terrible peak in March, April and May 2020, they feel a terrifying sense of déjà vu. Once again, healthcare workers feel abandoned by the very people who …

Read More »

Our View: More Flood Policies May Be Needed, Now More Expensive | Latest titles

Most flood damage occurs outside of the highest risk area where properties are less likely to be insured. These streets of Atlantic City were flooded by a winter storm last February. Edward Lea, personal photographer In October, the National Flood Insurance Program began rolling out new, more realistic pricing for …

Read More »

81-year-old grandmother says she survived bear attack

The New Jersey grandmother who battled a 300-pound bear says she only survived the dismemberment because her beloved spaniel, Amanda, sacrificed her life in a valiant fight against the beast. “I survived, because he took the dog. If he hadn’t taken the dog, he probably would have gotten rid of …

Read More »

Bizzy Banks arrested for weapons, drugs and money laundering

Bizzy Banks is back in custody. According to the Daily Voice, the 23-year-old rapper – legally named Majesty Blessed Moses – was arrested Friday morning after authorities raided his home in Hackensack, New Jersey. Local officials say the raid yielded more than two pounds of marijuana, $ 2,750 in cash, …

Read More »

Long-term commercial loan options for small businesses

Smart business owners know they can do more with a little extra working capital. And when they don’t have the extra money available, they take out small business loans. Sounds simple, doesn’t it? There are actually many types of business loans out there, so finding the one that’s right for …

Read More »

What’s new with cannabis stocks for the week ending 07/01/22 – New Cannabis Ventures

Navigate the rapidly evolving cannabis industry with 420 Investor, a premium service that sends out real-time alerts and explanations on the news below and much more. Summary BDSA data suggests November cannabis sales edged down December was a record month for legal cannabis sales in Illinois 420 model investor portfolios …

Read More »