Spinwheel, a consumer credit data and payments company, recently published a consumer survey that revealed how shoppers feel about debt and how they manage it. The results revealed the complexities of having debt while also spotlighting differences between generational cohorts.
The authors of the report, which was based on a survey of 600 adults, concluded that debt is overwhelming for consumers. The report showed that regardless of the amount or type of debt, 57 percent of consumers polled “agree that thinking about debt is overwhelming. Among younger generations, this is even higher—72 percent of millennials and 74 percent of Gen Z consumers agree with this sentiment.”
Still, most of the respondents said they feel confident about their overall debt picture. “But confidence fades when the questions shift from knowing what they owe to understanding what to do about it,” the report stated.
Other key findings include that 28 percent of respondents said they avoid looking at their household finances. Among Generation Z consumers, 50 percent said they did the same. On the good news side, 90 percent of shoppers polled said they have a clear picture of how much money they owe, which includes credit card debt, loans, mortgages and buy now, pay later (BNPL) purchases.
Another notable data point was that 58 percent of respondents said they don’t believe their credit score has ever prevented them from accessing debt. And when asked if they know the interest rates on their credit cards or loans without looking, “nearly half (49 percent) said no,” the report stated. “At the same time, nearly one-third of all respondents (31 percent) agree they want to consolidate their debt but don’t know how. And, for Gen Z respondents, 52 percent want to consolidate but aren’t sure how to do so.”
One surprising survey result was that Gen Z emerged as the only generation saying that they feel more financial pressure based on the number of payments they manage instead of the total amount owed. “This points to an interesting shift in borrower perspectives,” the report noted. “As debt accumulates, complexity is becoming a bigger pain point than simply dollars owed.”
The results also showed that 50 percent of consumers polled said say they stay with the financial providers they already use when considering new debt. However, only 36 percent of Gen Z and 33 percent of millennials polled said they remain with providers they already use when considering new credit options.
When it comes to AI, 20 percent of Gen Z is increasingly more likely to leverage AI for insights and information (20 percent) or ask their friends and family for recommendations (26 percent) compared to other generational cohorts.
