Survey: Employees less likely to borrow on cards for necessities
By Juan Rodriguez and Laura Mohammad
One out of five employees (20 percent) borrow on their credit cards to pay for monthly necessities because they can't afford them otherwise, a study by the multinational accounting and professional services company PwC shows. That's the bad news.
The good news in PwC's 2015 Employee Financial Wellness Survey is that the percentage is down from 24 percent three years ago, and Gen Xers are showing the most improvement. In 2013, 33 percent of those ages 34 to 54 had to borrow on their cards for necessities. In this year's study, it's down significantly, to 23 percent.
The workers at the opposite ends of the income scale rely least on borrowing against credit cards for necessities. Least likely are those making $100,000 or more -- only 15 percent of them count on their cards for necessities. Those making less than $30,000 were the second smallest group, with 19 percent.
Overall, the survey found positive trends in employees' financial wellness. Compared to three years ago:
- Fewer employees are having difficulty meeting household expenses (33 percent, down from 49 percent).
- Fewer employees consistently carry a credit card balance (47 percent, down from 53 percent).
- Of those who consistently carry a card balance, fewer report they have a hard time making minimum payments (26 percent, down from 39 percent).
The survey included 1,700 full-time employees ages 21-72. Age groups were divided thus: Gen Y -- 21-33; Gen X -- 34-54; Baby Boomers -- 55-72. The margin of error was plus or minus 3 percent. The survey was released April 17, 2015.
To use the graphic on your site, use the following code:
Published: May 21, 2015
- Young consumers most cautious about online payments – A survey shows that showing that young consumers are the most cautious when paying for their purchases ...
- Digital wallets: Merchants to pave the way for consumer acceptance – Despite security concerns, more Americans are willing to use digital wallets, if merchants oblige ...
- Infographic: Debit, credit cards still killing off checks – The Fed’s 2015 shows checks account for only 12 percent of U.S. noncash transactions compared to 16 percent in 2012 ...