Welcome to The Savings Scene by Accrue, your go-to source for data-driven consumer insights on all things saving and spending.
In this installment of The Savings Scene, we break down some of the leading sources of debt-driven anxiety and ways companies can support consumers with inflation at a 40-year high and a potential recession on the way.
Medical Debt & Student Loans
Medical and student loans are some of the biggest sources of debt affecting Americans.
- Nearly one in four Americans skip medical care because of the costs
- Medical debt is causing an alarming rate of poverty among the elderly
- 60% of borrowers say that student loan debt negatively affects their mental health
People are looking for opportunities to travel, even with rising costs and potential debt.
- Almost 1 in 5 consumers have gone into debt because of a vacation
- 81% of consumers who have gone into debt because of a vacation incurred over $500 of debt
People, especially millennials, are prone to taking on debt without realizing from using BNPL services.
- 60% of millennials have used BNPL
- 44% of millennials have used a credit card to make their BNPL payments
- 57% of millennials have missed a payment
Here’s what companies can do to support their customers:
- Educate customers on how to avoid payment app fraud, a major source of spending stress. Here’s a breakdown on some of the most common scams, and here’s a comparison of privacy and security across mobile payment apps… including which ones share data with third parties.
- Provide shared spending options. Getting something as a gift is always more meaningful than purchasing it yourself, right? Brands can reproduce that feeling by making split payments or crowdfunding easier, so friends and family can share the experience — and lighten the financial burden.
- Offer help! If your company has the resources to do so, create an infrastructure to connect struggling customers with financial advisors.Consider ways to partner with nonprofits like the National Foundation for Credit Counseling… and remember that spending toward such partnerships is often tax deductible.
- Be thoughtful around your retail credit card and BNPL offerings.Retail cards can encourage excessive spending, negatively impact consumers’ credit and contribute to rising delinquencies. Companies who encourage thoughtful spending will win consumer trust and brand affinity in the long run.
- Reward smart spending. When we surveyed consumers on how businesses can help them overcome financial anxiety, over half of respondents (53%) agreed that getting rewards for saving was by far the best incentive.
Accrue Savings is a brand-embedded savings account that provides a sustainable, credit-free payment option for customers. With Accrue’s savings-oriented experience, customers are empowered to make their purchases on their own terms. Accrue can turn passive shoppers into active buyers, reduce advertising costs for your brand, and help lock in predictable revenue for your business. Want to learn more? Go to https://www.accruesavings.com/business
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