The pandemic of 2020 wreaked a particular kind of havoc on Americans with debt. According to the Ramsey Solutions Q1 State of Personal Finance study, 42% of those with consumer debt say the pandemic has been a financial setback they don’t think they can come back from, compared to 27% of people without consumer debt.
The study reveals that people in debt are more likely to feel unsatisfied, worried, and stressed than those with no debt. And while 79% say they are hopeful about their personal finances in the year ahead, 60% aren’t currently creating a monthly budget.
“It’s concerning to see that money is the number one cause for significant stress and anxiety, yet the majority of Americans aren’t creating a budget,” said Rachel Cruze, personal finance expert and two-time #1 national best-selling author. “If you don’t tell your money where to go, you’ll wonder where it went. A budget is simply telling your money where to go.”
Other key findings:
- 44% of those in debt say they’ve lost sleep over their finances while 24% of people without debt say they lost sleep for that reason
- 1 in 5 Americans with a credit card have “maxed it out” in the last month, and 1 in 4 Americans with debt are in collections for at least one of their debts.
- Half of millennials with debt report being in collections, compared to 16% of Gen Xers and 6% of Boomers.
- Of those who received stimulus checks, those without consumer debt (45%) were more likely to save the stimulus money than those with debt (31%)
- 23% of Americans report being worse off financially compared to last year, while 30% report being better off than last year
- Only 4% of Americans have invested in cryptocurrency
Read the entire study at: www.ramseysolutions.com/debt/state-of-personal-finance-2021-q1-research.
About The Q1 State of Personal Finance Study
The State of Personal Finance Study is a quarterly research study conducted by Ramsey Solutions with 1,023 US adults to gain an understanding of the personal finance behaviors and attitudes of Americans. The nationally representative sample was fielded March 25-30, 2021 using a third-party research panel.
Photo by Emilio Takas