Skip to Content Facebook Feature Image

Discover Survey: Anxiety and Avoidance are Driving the Financial Lives of Many Americans

News

Discover Survey: Anxiety and Avoidance are Driving the Financial Lives of Many Americans
News

News

Discover Survey: Anxiety and Avoidance are Driving the Financial Lives of Many Americans

2024-07-23 17:55 Last Updated At:18:00

RIVERWOODS, Ill.--(BUSINESS WIRE)--Jul 23, 2024--

Four in five Americans have anxiety about their financial situation, with 34% experiencing moderate or severe anxiety, according to a new national survey conducted by Discover® Personal Loans. The number of Americans who feel some level of financial anxiety has remained consistently high the past three years and is up nine percentage points from 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240723820169/en/

American Consumer Financial Anxiety Index a

Financial stress is so severe that many Americans appear to be fearful of even looking at their situations. This is especially true among Gen Z with 41% who say they avoid looking at the amount of money in their bank account (vs. 27% of Millennials and 20% of Gen X).

“For the many Americans experiencing financial stress and anxiety, it may help to write out the reasons why and then address those in small and manageable steps,” said Dan Nickele, vice president, Discover Personal Loans. “Some steps could be building a monthly budget, reviewing expenses to identify opportunities to cut costs and making a plan for potential unexpected expenses like medical costs or home repairs. It may help lower stress just to know that a low fixed interest rate loan could be available if it’s needed in the future for a financial emergency.”

Inflation, expenses, the economy and income are the top drivers of financial stress in 2024

More than half of Americans continue to say high inflation contributes to their feelings of financial stress (58% in both 2024 and 2023, the top stressor both years). Additionally, stress around expenses, the economy and income reached a high point two years ago, and has remained significantly higher than in 2021.

Top Financial Stressors for American Consumers b

About one-third (30%) of Americans cited debt as a cause of financial stress. Of those, 84% have credit card debt and 55% have medical and/or home loan debt. Nearly nine in ten (88%) survey respondents have been in debt at some point, and of those 55% say their main priority is to pay their debt off quickly.

“Creating and sticking with a plan for paying off debt may give consumers peace of mind, open up new financial opportunities and could put them on a path toward a more rewarding financial future,” adds Nickele.

Americans do not feel financially prepared for many life events

According to the results of the study, many Americans do not feel well equipped to handle a litany of life events that may contribute to feelings of financial strife. For instance, most Americans do not feel financially prepared to lose their job (64%), take on caregiver expenses (63%) or take on unexpected expenses over $5,000 (60%). c

Americans do not feel financially prepared to handle c …

Misconceptions around managing debt vary across generations

According to the survey, 31% of Americans feel that they will never get out of debt, which is similar across generations (36% Gen Z, 39% Millennials, 34% Gen X).

“Consumers across generations and economic situations may not be aware of the financial tools available to help them manage their debts and unexpected expenses,” said Rachael Olson, director of product strategy, Discover Personal Loans. “Those who are struggling with debt could potentially benefit from a type of personal loan called a debt consolidation loan, which may allow them to combine multiple higher-rate balances into a single fixed-rate loan with a set monthly payment to budget for.”

The reasons Americans avoid taking out a personal loan vary across generations. Thirty-three percent of Millennials and 32% of Gen X say they don’t take out a personal loan because the fees are too high, vs. only 18% of Gen Z. Meanwhile, 22% of Gen Z say it’s because they don’t understand how to apply for a personal loan, vs. only 6% of Millennials and 2% of Gen X. Twenty-one percent of Gen X consumers don’t believe they will qualify for a personal loan, vs. 18% of Millennials and 15% of Gen Z.

“We encourage consumers to do research to find the best personal loan product that can be tailored to their needs,” adds Olson. “Some of the roadblocks identified by our survey can be addressed by looking for a lender that offers a competitive interest rate, no application fee, no origination fees or closing costs, and flexible repayment terms. We also recommend looking for a lender with a strong history of great customer service, with agents available to answer any questions.”

Discover Personal Loans has many resources available to help consumers learn about managing debt, financing major expenses and reaching their financial goals. A personal loan calculator can help consumers find a loan term that works for their individual situation, and a debt consolidation calculator can help consumers see what they could potentially save if they were to consolidate higher-interest debt with a personal loan.

About the Survey

The national survey of 1,500 U.S. residents ages 18 and up was commissioned by Discover and conducted by Dynata (formerly Research Now/SSI), an independent survey research firm. The survey was fielded from April 16 through April 23, 2024. The maximum margin of sampling error was +/-3 percentage points with a 95 percent level of confidence.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover® card, America's cash rewards pioneer, and offers personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

Equal Housing Lender

Discover makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

80% of Americans have anxiety about their financial situation. (Graphic: Business Wire)

80% of Americans have anxiety about their financial situation. (Graphic: Business Wire)

TEL AVIV, Israel (AP) — Israeli aircraft struck Hezbollah weapons smuggling sites along Syria's border with Lebanon, the Israeli military said Saturday, testing a fragile, days-old ceasefire that halted months of fighting between the sides but has seen continued sporadic fire.

The military said it struck sites that had been used to smuggle weapons from Syria to Lebanon after the ceasefire took effect, which the military said was a violation of its terms. There was no immediate comment from Syrian authorities or activists monitoring the conflict in that country. Hezbollah also did not immediately comment.

The Israeli strike, the latest of several since the ceasefire began on Wednesday, came as unrest spread to other areas of the Middle East, with Syrian insurgents breaching the country's largest city, Aleppo, in a shock offensive that added fresh uncertainty to a region reeling from multiple wars.

The truce between Israel and the Iran-backed Hezbollah, brokered by the United States and France, calls for an initial two-month ceasefire in which the militants are to withdraw north of Lebanon's Litani River and Israeli forces are to return to their side of the border.

The repeated bursts of violence — with no reports of serious casualties — reflected the uneasy nature of the ceasefire that otherwise appeared to hold. While Israel has accused Hezbollah of violating the ceasefire, Lebanon has also accused Israel of the same in the days since it took effect.

Many Lebanese, some of the 1.2 million displaced in the conflict, were streaming south to their homes, despite warnings by the Israeli and Lebanese militaries to stay away from certain areas.

Lebanon’s state-run National News Agency reported that an Israeli drone attacked a car in the southern village of Majdal Zoun. The agency said there had been casualties but gave no further details. Majdal Zoun, near the Mediterranean Sea, is close to where Israeli troops still have a presence.

The military said earlier Saturday that its forces, who remain in southern Lebanon until they withdraw gradually over the 60-day period, had been operating to distance “suspects” in the region, without elaborating, and said troops had located and seized weapons found hidden in a mosque.

Israel says it reserves the right under the ceasefire to strike against any perceived violations. Israel has made returning the tens of thousands of displaced Israelis home the goal of the war with Hezbollah but Israelis, concerned Hezbollah was not deterred and could still attack northern communities, have been apprehensive about returning home.

Hezbollah began attacking Israel on Oct. 8, 2023, in solidarity with the Palestinian militant group Hamas and its assault on southern Israel the day before. Israel and Hezbollah kept up a low-level conflict of cross-border fire for nearly a year, until Israel escalated its fight with a sophisticated attack that detonated hundreds of pagers and walkie-talkies used by Hezbollah fighters. It followed that up with an intense aerial bombardment campaign against Hezbollah assets, killing many of its top leaders including longtime chief Hassan Nasrallah, and it launched a ground invasion in early October.

More than 3,760 people have been killed by Israeli fire in Lebanon during the conflict, many of them civilians, according to Lebanese health officials. The fighting killed more than 70 people in Israel — over half of them civilians — as well as dozens of Israeli soldiers fighting in southern Lebanon.

Mroue reported from Beirut.

Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war

Teacher Ahmed Awada inspects his school that was damaged by an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Friday, Nov. 29, 2024. (AP Photo/Bilal Hussein)

Teacher Ahmed Awada inspects his school that was damaged by an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Friday, Nov. 29, 2024. (AP Photo/Bilal Hussein)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Displaced residents drive past destroyed buildings as they return to Nabatiyeh, Lebanon, after a ceasefire between Israel and Hezbollah went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Mohammed Zaatari)

Hezbollah supporters cheer as they return to Dahiyeh, in Beirut, Lebanon, following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Bilal Hussein)

Hezbollah supporters cheer as they return to Dahiyeh, in Beirut, Lebanon, following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Bilal Hussein)

Displaced residents return to Dahiyeh, in Beirut, Lebanon, following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Bilal Hussein)

Displaced residents return to Dahiyeh, in Beirut, Lebanon, following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024. (AP Photo/Bilal Hussein)

Displaced residents celebrate as they return to their villages following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024, in Ablah, eastern Lebanon. (AP Photo/Hassan Ammar)

Displaced residents celebrate as they return to their villages following a ceasefire between Israel and Hezbollah that went into effect on Wednesday, Nov. 27, 2024, in Ablah, eastern Lebanon. (AP Photo/Hassan Ammar)

Recommended Articles