NEW YORK--(BUSINESS WIRE)--With credit scores in the U.S. reaching record highs*, it would appear that Americans’ financial burdens are improving but, contrary to popular belief, a good credit score does not necessarily mean financial freedom. From repairing a car, fixing a leaky roof, replacing an air conditioner to paying for a child’s braces, expected and unexpected expenses occur often. In these moments, many Americans turn to credit cards to cover payments, and when they are unable to pay the balance they can end up in a cycle of high-interest, variable rate credit card debt. A recent survey conducted by Marcus by Goldman Sachs revealed that over one third (38%) of creditworthy Americans (credit scores of 660+) are struggling with credit card debt and many of those in debt are unaware of alternative options.
Additionally, for those with good credit and credit card debt, over half (52%) state that they don’t feel in control of their finances with 40% admitting to feeling embarrassed by their debt. The Marcus by Goldman Sachs® Debt Survey of creditworthy Americans in credit card debt also revealed that:
- 51% consider their debt to be a major issue impacting their lives
- Consumers feel that unexpected occurrences such as medical expenses (64%) or an injury (41%) are factors that cause them to incur debt
- Nearly half (42%) say credit card debt impacts their ability to get to the next phase in their life
“Based on recent findings from the Marcus by Goldman Sachs Debt Survey, there’s a surprising number of consumers with good credit and a history of responsible spending who feel immense financial pressures and are falling into credit card debt,” said Andrea Woroch, consumer finance expert working with Marcus. “More than half of them don’t feel in control of their finances, which greatly impacts their lives and there needs to be a better understanding of options that can help them navigate their debt.”
Last fall, Goldman Sachs introduced Marcus an online platform offering unsecured personal loans to consumers with good credit (credit scores of 660+). Marcus provides creditworthy Americans with an alternative debt management tool when expected and unexpected moments happen that cause a need to borrow on credit cards. The recent survey also uncovered that 77% of those in debt are unaware of the option of using a personal loan to pay off their credit card debt.
“Increasing numbers of consumers who have good credit are struggling with credit card debt. Many of them are unaware that there are alternative ways to manage that debt, such as credit card consolidation loans that could be a better option for them,” said Harit Talwar, Head of Marcus by Goldman Sachs. “Our offering provides them with a choice.”
Marcus loans provide consumers with a transparent and simple approach to better manage their high-interest credit card debt. Creditworthy borrowers can apply for fixed-rate, no-fee personal loans of up to $30,000 for periods of three to six years.
Named after Marcus Goldman, one of the firm’s founders, Marcus is a new business with the strength and heritage of a 147-year-old financial institution coupled with the flexibility of start-up. As the Marcus team built the personal loan platform, they spoke with 10,000 consumers to hear their pain points and struggles with debt. Based off of those conversations, Marcus offers personal loans that have:
- No fees.
- Fixed rates throughout the period of the loan.
- The ability to pick your own monthly payment date and loan amount.
- Marcus loan specialists available for live, personalized support. When the phone rings at the dedicated call center, people, not machines answer.
For more information, please visit Marcus.com
About Marcus by Goldman Sachs
Marcus by Goldman Sachs provides products to help people manage their finances. The first product from Marcus is a fixed-rate, no-fee unsecured personal loan that enables customers to tailor their monthly payment options to fit their schedule and budget. Marcus is supported by the Goldman Sachs Group, Inc. (NYSE: GS) and its 147-year history of financial expertise, risk management and customer service.
The Marcus by Goldman Sachs Debt Survey was conducted between April 10 and April 17, 2017 among 1,036 Americans ages 22 and over with a FICO score of 660+, using an e-mail invitation and an online survey.
*Findings announced by the Fair Isaac Corp – the company behind the FICO credit score metric. The WSJ reported that the average credit score hit 700 in April to reach its highest level since the information was first tracked by Fair Isaac Corp.