New Study Unlocks Key to Eliminating Americans’ Debt by Understanding Consumer Behavior

Twelve-month study from Payoff, designed by the brain behind eHarmony’s compatibility algorithm, now helping people achieve a more balanced relationship with their money

Personality is a strong indicator of how you manage money. Take a look at the history of money and personality and how they now intersect. (Photo: Business Wire)

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COSTA MESA, Calif--()--Payoff Inc. (https://www.payoff.com/), the leading financial wellness company innovating at the intersection of psychology and finance, today announced the results of a 12-month study analyzing how personality interacts with financial decision-making. Designed by a team of scientists led by Dr. Galen Buckwalter, inventor of the algorithm powering relationship success at eHarmony, the study systematically explores how Americans interact with money. With the average U.S. household carrying $15,762 in credit card debt in 2015* and the country as a whole nearing $1 trillion in credit card debt this year, the conclusions of the study provide a clear and needed path to help Americans improve their relationship with money.

With the average U.S. household carrying $15,762 in credit card debt* in 2015, the analysis of the study provides a clear path to help Americans improve their relationship with money. The Payoff Science team, a fusion of clinical and research psychologists, psychometricians, neuroscientists and data scientists, has identified 10 financial personalities from the company’s patent-pending Financial Personality Quiz that, once understood, are shown to positively impact people’s financial behavior and overall financial well-being. The quiz builds on decades of scientifically-validated personality testing and adds a previously unreported layer of the impact of financial behaviors with money.

“In the simplest terms, understanding human behavior with love or with money starts by understanding our personality — who we are and how we manage the stresses and anxieties of life,” said Dr. Galen Buckwalter, Payoff Chief Science Officer. “Given our psychological makeup, it’s no wonder so many people are struggling with debt and financial anxiety. The results of the Payoff Financial Personality Quiz provide a roadmap to help change financial behaviors and retrain the brain to think differently about money, debt and savings.”

Highlights of the data analyzed from more than 50,000 completed assessments in the 12-month study find:

  • Of the 10 personalities, the largest financial personality group in the U.S. (14.7 percent) is “The Storyteller” -- consumers who are transparent about financial challenges and have a tendency to spend impulsively when out with friends
  • The smallest financial personality group in the U.S. (5.6 percent) is “The Ambassador” -- consumers who always help others in dire financial straits and have high credit card debt related to peer pressure to spend more

“Based on our research, we know the current financial system doesn’t work for the personalities of 4 out of 5 Americans - that’s an incredible amount of people who are not wired to achieve financial wellness and are stuck on a treadmill of debt,” said Scott Saunders, Payoff CEO. “Our holistic approach starts with understanding personality, followed by a loan to eliminate high interest-rate credit card debt, and resets behavior change for long-term success. Leveraging personalized solutions to nurture better financial behavior for each financial personality we’ve identified, less than one quarter of one percent of our members default on their loan payment – an incredible testament that our approach is truly changing lives and society for the better.”

Founded on the core insight that financial wellness is a learned behavior, Payoff’s application of science and validated research has proven to be powerfully predictive of financial outcomes across a wide array of demographics. By leveraging each person’s unique behavioral core, Payoff seeks to re-invent their members’ relationship with money by reducing stress, changing habits and increasing financial wellness.

To take the Financial Personality Quiz and reveal your financial behavior, please visit: https://www.payoff.com/quiz. And for more information on Payoff, please visit: www.payoff.com.

*according to a 2015 study by NerdWallet

About Payoff (www.payoff.com)

Payoff, Inc. is a financial wellness company applying science, psychology and technology to help members reinvent their relationship with money – accelerating their journey to financial well-being. Payoff empowers members through an integrated package of products and services that includes a loan to refinance credit card debt, support from dedicated Member Advocates, access to ongoing education and the consistent application of psychometric research and psychology to drive positive and sustained behavior change along the path to financial wellness. Payoff's Board of Directors includes Joe Saunders (former Visa CEO), Arianna Huffington (Huffington Post Founder), Mohamed El-Erian (former Pimco CEO), Sean Park (Anthemis Group Founder), and Jim Lane (former Goldman Sachs partner).

Contacts

for Payoff Inc.
Ronald Quintero, 323-761-6600
Ronald.Quintero@edelman.com

Release Summary

Payoff Inc., the leading financial wellness company, today announced the results of a 12-month study analyzing how personality interacts with financial decision-making.

Contacts

for Payoff Inc.
Ronald Quintero, 323-761-6600
Ronald.Quintero@edelman.com