Financial invisibles are those who are either neglected by or left out of the traditional financial system. Their lack of participation originates from their life circumstances, perception of their current financial stability and their outlook on the future. PYMNTS, in collaboration with Unifund, surveyed 2,000 Americans to dive into and derive insights from their relationships with credit and debt.
The survey analyzed four personas:
Considered as a whole, the sample had an average credit score of 695, average income of $70,000 per year, average age of 45 and employment rate of 60 percent or greater.
All four personas were studied, but the report zeroed in on the Second Chances group. Despite sharing similar life circumstances with the No Worries subset, Second Chances behaved somewhat like Shut Outs. Seventy-one percent reported being behind on bill payments, as did 79 percent of the Shut Outs. Both tapped into nontraditional payment products when looking for alternative ways to manage their personal finances, with as many as 13 percent of Second Chances and 3.6 percent of No Worries consumers resorting to personal loans. Both expressed pessimism about their financial futures.
Other key takeaways from the July edition of the PYMNTS Financial Invisibles Report, a Unifund collaboration, include:
To learn more about consumers’ perceptions of their financial situations compared to their realities, their reasons for choosing traditional versus nontraditional financial products and the factors influencing the decision process, download the Financial Invisibles Report.
About PYMNTS:PYMNTS is where the best minds and the best content meet on the web to learn about “What’s Next” in payments and commerce. Our interactive platform has reinvented how companies in payments, commerce and retail share relevant information about the initiatives that make news and shape the future. Our data and analytics team includes economists, data scientists and industry analysts who work with companies to measure and quantify the cutting-edge innovations in this new, dynamic commerce ecosystem.
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