The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
After years of economic turmoil faced by millions of Americans, a large number of consumers now have new attitudes toward the kinds of financial missteps that can land borrowers in credit trouble, including strategic defaults.
A sizable amount of Americans now consider it socially acceptable to have a low credit score or strategically default on their outstanding mortgage balances, according to new data compiled by JZ Analytics as part of a poll for ID Analytics. In all, 36 percent of those polled said they believe it’s acceptable to have a poor credit score these days, accounting for 77 million people across the country if the data is extrapolated out.
More interesting, however, is that many consumers have seen their attitudes toward intentionally falling behind on underwater mortgages change drastically in the last few years, the report said. A total of 32 percent of those polled – 68 million people nationwide – say homeowners should be able to strategically default on their mortgages without facing any consequences whatsoever for doing so.
Further, 13 percent, or 28 million Americans, say they would likely strategically default, the report said. Another 17 percent, or 36 million residents, say they know people who have already done so.
“Our research into the consumer opinion of the economic crisis of 2008 found alarming results,” said John Zogby, a senior analyst at JZ Analytics and creator of the Zogby Poll. “What jumped out is how many Americans feel it is acceptable for homeowners to walk away from a mortgage and go into foreclosure. If Americans carry on with that mindset, it will continue to cause problems as the economy undergoes a slow recovery.”
Another area in which consumers have more relaxed attitudes toward certain aspects of their credit rating is whether they would exaggerate their standing to obtain new lines of credit, the report said. In all, 17 percent of those polled said they would do so, making up some 36 million Americans.
Finally, another 35 percent of respondents – 75 million Americans in all – said they are now more afraid of being victimized by identity theft than they were five years ago, the report said.
Identity theft and account mismanagement can lead to serious damage to a borrower’s credit score, and therefore all financial documents, including credit reports, should be monitored closely as often as possible.
Image: zeevveez, via Flickr
March 7, 2023
Credit Score
January 4, 2021
Credit Score
September 29, 2020
Credit Score