Keeping your finances in order is a challenge. If you add credit cards and debt to the mix? You add another layer of complexity. When you borrow money by applying for loans or using a credit card, you’re usually spending more money than you think. Add interest and fees, and suddenly, you’re in deeper than you thought. The fact is, budgeting, planning, and figuring out your income and expenditures is difficult to master — in fact, many people never seem to figure it out. Credit card balances make it even harder.
A new survey from Affirm, a company founded by PayPal co-founder Max Levchin, dug into the struggles people have with credit card balances to give us a better idea of how much of a problem it is. Interestingly enough, while many Americans are seemingly averse to accumulating debt, their actions tell a different story.
“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,” Affirm’s team told The Cheat Sheet.
The survey revealed that the cycle of debt that credit cards introduce into people’s lives creates a lot of havoc. Interestingly enough, people don’t even need to have incurred debt for it to have a serious psychological impact. From Affirm’s survey, here are seven key findings that show the big impact credit card debt is having on many Americans.