Over 30% of US Adults Will Take On Debt for Latest Phone

One in three Americans says it is worth using a credit card to buy the newest smartphone model, according to a WalletHub survey released this week.

The findings present a contradiction in consumer psychology. While almost 90% of respondents stated that new phones are overpriced, more than 30% said they would take on debt to secure the latest hardware. The survey also found that nearly half of participants would feel inferior if they used a budget cell phone plan.

John Kiernan, managing editor of WalletHub, attributed these conflicting views to the device's role as a status symbol. He noted that 32% of people associate always having the latest iPhone with being rich. Kiernan said many individuals want to give off that impression regardless of their actual financial situation.

“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 to functional needs as a driver for upgrades, noting that some users require the latest technology for work tasks. For consumers trying to avoid debt, he recommended switching carriers to access promotional offers that include new devices. He also suggested buying the previous generation model, which is often more affordable but still current.

The survey did not specify the sample size or the exact dates of the data collection window beyond the recent release.