WalletHub Survey Finds 33% of Americans Accept Phone Debt

More than one in three Americans say it is worth taking on debt to buy the latest phone, according to a WalletHub survey released today. The data comes from a national poll conducted by the personal finance website.

The results show a split in public opinion. While 33% of respondents believe the cost of the newest model justifies credit card debt, nearly 90% say new phones are overpriced. Additionally, nearly half of those surveyed reported feeling inferior if they used a budget cell phone plan.

John Kiernan, managing editor of WalletHub, attributed the behavior to social pressure. He noted that the phone functions as a status symbol for many users. “A lot of it has to do with keeping up with appearances and presenting a certain image to others,” Kiernan said. “For example, 32% of people say someone who always has the latest iPhone is quote unquote rich, and a lot of us want to give off that impression whether or not it’s true.”

Kiernan also pointed out that work requirements drive some of the demand. Because modern phones handle many tasks, some buyers feel they must have the newest hardware to keep up with technology at their jobs.

For consumers trying to save money, Kiernan suggested switching carriers. “Look into what kind of option you have from phone carriers and phone plans,” he said. “A lot of times if you switch from one carrier to another you can get a new phone and maybe a bunch of other devices as well.”

He also advised buyers to consider the model released just before the newest one. That phone is often more affordable while still offering strong performance. Kiernan said researching bundled services can also help buyers find a better price on a new device.