Most Americans are uncomfortable with Debt.

Mediamark Research Inc. (MRI) released a new consumer segmentation analysis that groups adults according to their level of comfort with personal debt. Interestingly, when consumers’ financial attitudes are cross-referenced with their financial behavior, it’s clear that the majority of people borrow money despite being uncomfortable doing so.

Based on data from MRI’s Survey of the American Consumer, MRI researchers grouped adults (age 18+) into four distinct attitudinal groups:

Money Borrowing Attitudes Segments

– Balk the Bank – These consumers are very uncomfortable with borrowing money; essentially, they hate doing it.

– On Someone Else’s Dime – Members of this segmentation are credit-reluctant in their attitudes. They don’t feel as strongly negative about borrowing as members of the” Balk the Bank” segment, but it does make them uncomfortable.

– To Their Credit – These consumers are credit realists. They don’t necessarily like to borrow money, but it doesn’t make them uncomfortable to do so.

– I.O.U. – Consumers in this category have the mind-set of a credit enthusiast: they are not averse to borrowing, nor does borrowing increase their anxiety
levels.

The majority of adults (57.2%) fall into the “Balk the Bank” segment. This is true for men (54.6%), women (59.6%) and all age groups. Moreover, this pattern remains true despite the actual debt adults’ report they carry. For instance, 52.1% of adults who report they “Always or Usually” carry credit card debt and 54% of those with a second mortgage are in the “Balk the Bank”
segment—the group most uncomfortable with personal debt.

“What this segmentation shows pretty clearly is that people’s preferences and actual behavior are not always in sync,” said Anne Marie Kelly, Vice President of Marketing and Strategic Planning at MRI. “What’s interesting is the widespread discomfort with borrowing, despite all the evidence we have concerning the personal debt level in the U.S. One insight for financial marketers is that programs that make debt easier to manage and accept will resonate with their customers and prospects. ”

To view charts CLICK above on ‘More Images’.