New research finds one third of adults in the U.S. have ruined a relationship over IOUs and are owed on average $450. A driving reason is discomfort around financial conversations; more than 50 percent of Americans find it awkward to ask their friends or family to pay them back.
PayPal released a new PayPal Money Habits Study that sheds new light on people’s attitudes and behaviors around money. In a survey of 4,000 consumers in the U.S., Canada, Germany and Australia, the study found that one third of adults in the U.S. have ruined a relationship over IOUs and are owed on average $450. A driving reason is discomfort around financial conversations; more than 50 percent of Americans find it awkward to ask their friends or family to pay them back.
The survey also found digital wallets continue to gain popularity with one third of respondents preferring a digital wallet to a real one. Most people dislike dealing with checks (74 percent), and while cash is still king, mobile payments are on the rise with peer-to-peer (P2P) payments increasingly popular for IOUs.
Bottom line – money is an uncomfortable subject and it takes a lot of time to chase down debts. More than half of people surveyed across the four countries find it awkward to ask their friends or family members to pay them back, and nearly 55 percent on average admitted they felt embarrassed asking friends to spot them cash.
Small, unpaid debts between friends may seem easy to forgive when hoping to avoid awkward conversations, but they can leave a sizable hole in consumers’ wallets. According to PayPal’s study, adults are owed an average of nearly $450 – a global total of $51 billion.
That’s a pretty steep financial cost, but the greater one comes to people’s health and happiness – one-third of people have lost a friend or ruined a family relationship over debt. Dr. Howell explains that social connections are not just a nice-to-have, they are a must-have for our emotional well-being.
PayPal just announced a way to name your money with PayPal.Me – a free, simple, and personal way for people to request money from anyone across the globe. PayPal.Me is a personal link (for example, John Smith’s link could be paypal.me/JohnSmith) and can be sent to groups of friends, family and colleagues for a quick, hassle-free way to pay someone back quickly. It’s an instant, safe, unique link that works on any device no matter where it’s used – in a text, email, instant messenger, social media post, blog, or on the web. Anyone who receives it has a fast and easy way to pay an IOU quickly.
With P2P payments providing the option to avoid wasting time to chase down debts or deal with the friendships going sour over money, the vast majority of people around the world are looking forward to foregoing having to rustle up cash or pull out a checkbook when it comes time to split a bill or go in on a present together in the near future.
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