A new survey shows our clients are smarter online shoppers than the rest of the country. But why?
When Consolidated Credit polled its clients and the public about online shopping, its researchers expected the clients to be a little savvier. Turns out, they’re a lot savvier.
For example, more than half (53%) of the general public are lured into overspending because of the convenience of online shopping. Consolidated clients? It’s 41%.
Clients are also more responsible when it comes to the hot topic of Buy Now Pay Later. While the summer survey of 500 nonclients showed that more than half (52%) had missed a payment – which comes with costly late fees – only 16% of the 500 Consolidated Credit clients we polled had missed one.
These and other results raise a question: Did Consolidated Credit already make an impact on these clients? Or did those clients have fiscal responsibility percolating inside them, which is what made them contact Consolidated Credit in the first place?
As a director here for the past two decades plus, I can give you my educated opinion: It’s a little bit of both.
Less money but more discipline
When new clients come to Consolidated Credit, they often have credit card debt in excess of $10,000. So they don’t have a lot of money to throw around. What they do have is discipline.
For example, our surveys asked: “Does the convenience of online shopping make it harder to maintain a budget and/or avoid overspending?”
For the general population, 53% said yes. For Consolidated clients, a whopping 59% said no.
I’d like to think that’s because Consolidated Credit spends a lot of time educating our clients about smart spending and saving. We don’t just want to get clients out of debt. We want to keep them out.
So, I’m not surprised by the answer to this question: “Have financial products like credit card rewards influenced your decision to shop online more frequently?”
Most responses among the general population were, “I love getting free points!” Only 4 in 10 said they resisted that temptation and “only buy what I need.” That is, of course, the right answer because it doesn’t make sense to get even 5% cash back if you can’t pay off balances that charge you 20% interest.
Maybe that’s why more than 7 in 10 Consolidated clients (74%) said they also only buy what they need.
A much brighter future
While it’s no fun climbing out of debt, Consolidated Credit clients have reported other emotions that might be even better: relief, peace of mind, and hope for the future. As our surveys revealed, Consolidated Credit clients might have less money right now than the general public, but they’re acquiring more financial wisdom. So soon enough, they will have more money than the general population.
You’ve heard the expression, “Catch someone a fish, and eat for a day. Teach them to fish, and they eat for a lifetime.” That’s true at Consolidated Credit, except for replacing the fish with smart money management.
To be honest, I didn’t need to read these surveys to know what the results would be. I’ve been seeing those results in person, but it was nice to have my beliefs confirmed!
Shop Smart and Save
Money ManagementFinding practical ways to save money on daily expenses and big purchases can make a big impact on your budget. This guide teaches you how to save money when traveling, on transportation, on major home purchases, and every day. Learn how to shop smart and save!
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