SAN FRANCISCO, Dec. 14, 2016 /PRNewswire/ -- Affirm, Inc., the company started by PayPal co-founder Max Levchin to give consumers honest financial products, today announced the results of its research into the nuances surrounding consumers'—especially millennials—relationship with debt and credit.
Drawing upon a survey of 1,089 U.S. individuals between the ages of 22 and 44, the study reveals that while 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.
Key findings include:
- 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
"This research illustrates just how much of an impact uncertainty can have on consumers and their buying decisions," said Affirm Insights & Credit Analyst Ethan Monreal-Jackson. "Consumers are hungry for transparency and credit card alternatives that would allow them to responsibly spend. At Affirm, we're proud to bring honesty to consumer credit, providing consumers the flexibility they need to buy now and pay later without any fees, compounding interest or other surprises."
For access to the full survey summary, click here.
To find out more about Affirm, visit Affirm.com.
Affirm is reinventing consumer credit, making it more honest, transparent, and friendly. Our mission is simple: deliver honest financial products to improve lives. Founded by PayPal co-founder Max Levchin, Affirm gives you the flexibility to buy now and make simple monthly payments for your purchases. Unlike traditional credit options, we show you exactly what you'll owe upfront: no surprise fees, compounding interest, or confusing terms. By providing an option to pay on your terms, Affirm is helping people regain control of their finances and advance their financial well-being.
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SOURCE Affirm, Inc.