WalletHub survey: One in three Americans justify phone debt

A new survey indicates that a large portion of the American public accepts credit card debt as a necessary cost for owning the newest smartphone.

WalletHub found that more than one in three Americans believe it is worth putting a new phone on a credit card to obtain the latest model. This financial stance persists despite widespread complaints about pricing. The same survey revealed that almost nine out of ten respondents said new phones are overpriced.

Social perception drives the purchasing decision for many users. Nearly half of the people surveyed stated they would feel inferior if they used a budget cell phone plan. John Kiernan, managing editor of WalletHub, noted that the phone remains a status symbol. “A lot of it has to do with keeping up with appearances and presenting a certain image to others,” Kiernan said. He added that 32% of people view someone who always has the latest iPhone as rich, whether or not that impression is true.

Professional necessity also plays a role in the decision to upgrade. Kiernan said that because modern phones perform many functions, having the latest model is sometimes required to keep up with work technology. For consumers trying to save money, Kiernan advised shoppers to compare options across different carriers. “Look into what kind of option you have from phone carriers and phone plans,” Kiernan said. He noted that switching carriers can often result in a new phone and other devices at a lower cost.

Buyers can also choose the model that precedes the newest release. While this device will not be the latest technology, it tends to be more affordable. Researching bundled services may also lead to a better deal on a new phone. These strategies aim to reduce the financial burden while maintaining access to current capabilities.