Nearly 28 million people believe that getting one of the new iPhones launching September 12 is worth going into debt, according to WalletHub’s 2018 Credit Score & iPhone Survey.
More than 18 percent of people under the age of 45 say a new iPhone is debt-worthy, compared to five percent of those who are 45 and older.
The survey found:
· Five times more Millennials say the new iPhone is worth going into debt for than Baby Boomers.
· 29 percent of cell phone shoppers don’t know they could be in for a credit check.
· Nearly 187 million Americans trust Apple and Google more with their personal data than the government.
· 19 percent of people would rather have unlimited phone data than an excellent credit score.
· 44 percent of millennials believe their cell phone has a bigger impact on their life than their credit score.
National Foundation for Credit Counseling's Bruce McClary said the real issue is your investment devalues over time, so buying the latest and greatest iPhone at full price is about as good as setting your money on fire.
“You’re really better your money into a savings account. Letting that money grow. Using that money to pay down high interest rate debt,” said McClary.
He said one of the worst things a young person can do is pile on unmanageable debt, which puts them at risk for financial missteps, which could take years to get back on their feet.
McClary said making poor financial decisions can influence everything from the amount you pay for a mortgage, or whether or not you even qualify for a loan.
“Things like buying a house and buying a car are key stages of life, can be delayed because of those mistakes,” said McClary.
He said people also need a decent credit rating to get the best terms of financing for a phone.
Schools and parents can do better educating young people on financial decisions. Now, more schools are bringing in financial education into the K through 12 curriculum.
Even though the economy is doing well overall, not everything about our finances has been fine in recent years. In particular, credit card debt and student loan debt have hit record highs.
To help people save money on their cell phone bills, WalletHub has also produced a handy Cell Phone Savings Calculator, which crunches the numbers on whether it’s better to buy a phone upfront or pay in installments.