I’m the director of financial education for one of the nation’s oldest and largest nonprofit credit counseling agencies. So a big part of my job is studying numbers – usually negative numbers. As in, how much do Americans owe?
Many studies and surveys are like this one from JD Power: “Buy Now Pay Later Usage Surges.” If you know anything about BNPL – and you can learn more here – then you know it’s the latest way to fall deeply in crushing debt.
Yet according to JD Power, “Nearly two-fifths (37%) of all consumers and half (50%) of consumers under 40 used Buy Now Pay Later to make a purchase in the past 90 days.” Even worse, “customers are increasingly using it to manage their day-to-day spending.”
Yet that’s not the most concerning news I’ve heard recently. It’s this, which isn’t just about dollars but emotions…
Over the past two years, 2 out of 3 Americans declined participating in a social commitment due to the cost – yet 56% never told their loved ones that money was the reason. From trips with friends (30%) to family holiday gatherings (23%) and weddings (13%), Americans are missing major life events due to financial pressures they feel they can’t discuss openly.
That’s the conclusion to a new poll from the CFP Board, which represents certified financial planners. It’s particularly troublesome to me.
What debt does to your mood
This is where personal debt isn’t just a red number. It drags down the joy of a full life. The CFP Board poll is just the latest proof. Debt not only keeps you from having fun, it also keeps you isolated: “81% of Americans intentionally avoid discussing some money topics with family and friends.”
Suffering is terrible, but suffering alone is even worse. Frankly, I didn’t need this latest poll to know this. I’ve seen it up close and personal in my job. If you need any proof, peruse our Personal Debt Stories. These are profiles of clients – 196 out of many thousands. Almost every one of them told us something like this…
- “Before calling Consolidated I was very depressed. I was scared. I knew I needed some help,” Cheryl said.
- “I was overwhelmed and depressed,” Bernadette said.
- I was quite anxious all the time because of the financial state I was in,” Maria said.
They live in small towns and big cities, they earn six figures or almost nothing, they’re young and they’re old, but Consolidated Credit’s clients have something else in common besides stories of stress and depression. They often tell us about their shame and that turned a financial problem into a mental health problem.
No one to talk to
Fausto’s debt story is typical: “It came with a lot of shame. I mean, how do you call someone and say, ‘Hey, I borrowed all this money from you, and now I can’t pay it back?’”
“I was nervous and ashamed,” Victoria admitted when she called us. “I felt bad I needed help, but I swallowed my pride for our family’s sake.”
Matilde said the same thing: “In the beginning, there was this sense of shame. I was mad at myself for creating such a mess and letting it get so bad.”
Of course, there is someone you can talk to. Our credit counselors. As Margaret recalls, “I tried to figure a way out on my own and I couldn’t. I felt I had no choice but to call Consolidated Credit. A tremendous load was lifted after I called!”
That’s because our counselors don’t blame you for getting into debt. How could they? According to the Federal Reserve, 7% of Americans “hold some form of debt.” We’d have to blame nearly the whole country!
That’s why Luis says, “I was greeted in a friendly manner with no judgments and a simple yet comforting, ‘We are here to help you get in control again.’”
That’s what we do here. We end your debt, which ends your stress, which ends your isolation. But we can’t help you if we don’t hear from you.
