SAN DIEGO, May 24, 2016 /PRNewswire/ -- A new survey has revealed alarming concerns about U.S. military personnel's financial stability. The survey, which was carried out among active and retired military, veterans, reservists, and military family members, found that 65% of respondents are stressed about finances, with 17% unable to focus on the call of duty due to financial stress. The alarming statistics further pinpoint serious implications that are tied to the military community's debt and cash constraints.
Additional key findings from the survey include:
- 60% of survey respondents have friends in the military that are stressed about finances
- Nearly 20% say they are not financially stable, finding it difficult to make ends meet, or are living paycheck-to-paycheck
- 44% have credit card debt, with 29% carrying $5,000 in credit card debt or higher
- Despite nearly half of respondents carrying credit card debt, 67% would still resort to using a credit card as a financing option to make a $500-$1,000 purchase
- One in five survey participants have found themselves deeper in debt due to high-interest financing options that include credit cards and payday loans
- When asked about rent-to-own services, 5% had a horrible experience or regretted their decision after realizing they were paying two to four times the retail amount of the product
- Nearly 40% feel that the military community has limited access to good financing or credit options for purchasing products such as electronics, furniture and appliances
- If respondents had access to $1,000 interest-free credit, 45% would use it for big or unexpected purchases; 12% would use it for gifts for the holidays, family birthdays, weddings and events
"The financial instability of military personnel remains troubling. These disturbing statistics reveal that America's honorable men and women have resorted to using financially unhealthy products—ultimately causing the unfortunate reality of revolving debt and increased stress levels," said Michael Thiemann, co-founder and CEO of Zebit, the company that commissioned the survey. "Zebit is proud to offer a no-cost financing solution to help protect the people who protect us. Unlike the risky and harmful high-interest options available today, Zebit stands firm in never charging interest, fees or penalties, with the hope that active and retired military will have a better chance at getting their finances back on track. Making responsible credit options available to military personnel is the key to solving many of the financial problems outlined in this survey."
About the Survey
In May 2016, 121 individuals representing active and retired military, veterans, reservists, and family members of those who serve participated in an independent 20-question survey designed to identify current financial wellness behaviors. The survey was commissioned by Zebit. To learn more about the survey, contact Havas Formula at email@example.com.
Zebit is committed to offering no-cost, transparent credit to hardworking Americans. Zebit counters deceptive financing alternatives with interest-free credit, financial education, and planning tools to help working Americans and military personnel take control of their everyday financial lives. Its direct-to-consumer offering is exclusively available to active and retired military members associated with the U.S. Army, Marine Corps, Navy, Air Force and Coast Guard, with plans for expansion among National Guard, reserves, veterans and military spouses in 2017. Employers can also offer Zebit as a free employee benefit to lower employee stress and improve the corporate bottom line. Zebit is located in San Diego and is backed by VCs that include Crosslink Capital, Wildcat Venture Partners, Leapfrog Ventures and Correlation Ventures. Learn more at www.zebit.com/military.