Consumers can't spend money they don't have, and for now, many have run out of cash.
The winner is the lender who gives the end user consumers what they want. In order to provide a necessity for the background of the inflation continues and the income continues to stagnate relatively stagnation, it is increasingly important to understand the effects of financial lifestyles for credit use as many consumers rely on credit. It will be.
A new report from Pymnints Intelligence, the title “Financial LifeStyless Shape Credit Reliance”, is a variety of financial situations, especially how the wage lifestyle affects consumer credit use. We will provide you.
Contrary to general beliefs, the report discovered that this trust promoted not only income but also consumer financial stability and specific lifestyle.
Use of financial lifestyle and credit
Credits are often more convenient for consumers who are struggling to pay an invoice. it's necessary. 21 % of the total credit users reported that they could not pay the essential expenses without using credit, but this number dramatically dramatically to pay a salary with a difficult salary. I will jump. 43 % of the 43 % of this group's credit users stated that they can't afford to pay essential expenses without credit. This figure emphasizes the importance of trust as a lifeline for people facing financial instability.
In addition, this report shows how the credit is used for both essential purchases and non -essential purchases. Consumers who are struggling to pay a salary to pay and pay an invoice are 41 % of the essential costs and 43 % of the essential costs. In comparison, consumers who live on a salary relies on 56 % of the essential purchases and 63 % of the essential credit.
The disparity of this credit is suggested that financially restricted consumers may not only have low credit restrictions, but also be cautious in using credit for the necessary costs. I am. They are more likely to use their credibility modestly, and if possible, explore plans to manage their finances, such as installments.
read more: How to use a credit to make essential purchases using credit
Understanding consumer credit behavior
This survey shows that the amount of credit is greatly different depending on the consumer's financial situation and personal lifestyle. Consumers who can pay the invoice comfortably and cannot pay the salary will use credit cards more frequently and use rewards and cashback benefits. In contrast, those who are struggling to achieve their goals are more likely to use credit as a means of survival. This group may depend on alternative credit sources with different conditions and repayment structures.
Low -income consumers are more likely to use credit for essential purchases, but this report suggests that financial lifestyles are more powerful for trust than income alone. 。 The data indicates that the income gap is not completely explained why a specific group is likely to depend on credit. Instead, the key is whether consumers live on their salaries, and whether they are at the level of the financial burden they experience.
Another important discovery from this survey is that alternative credit products, such as payday loans, overdraft, and purchases now, are increasing. I will pay later. Consumers from struggling to salaries to salaries rely on these alternatives. 31 % of these alternative costs were purchased through alternative credit products. In particular, BNPL services are used for financial consumers and are used for non -essential purchases at a much higher price than financially secure groups.
Discovering the Pymnts report is a attention to expand US financial gaps, as credit continues to play an important role in the ability to achieve consumers' purposes. Buy luxury, but to cover the basic daily costs. The dependence on credit for essentials such as food and health care emphasizes how difficult it is for many people to manage finances in the current economic situation.
