American Spending Exceeds Its Income, According To Research
According to research, Americans are currently spending more than they are earning due to growing inflation, which has resulted in the accumulation of additional debt.
According to a June 2022 poll by LendingClub Corp. and Pymnts.com, Americans may have increased their spending over the first half of the year.
Bloomberg also reported that these consumers represent about 13% of the nation’s total population ie roughly 34 million people.
15.4% of inhabitants, according to a breakdown of the statistics, don’t have any savings. Another 22.2% of people have no savings at all. Additionally, while just 29.3% of residents have savings totaling more than $15,000, more than 30% have between $1,000 and $15,000.
Following a 9.1% increase in consumer prices in July, the United States had its highest inflation rate in 40 years. In August, the inflation rate decreased to 8.5%.
In order to pay for their everyday needs, many consumers have turned to using credit facilities, which has reduced savings and increased debt. The poll also showed that some households now live paycheck to paycheck.
Experts predict that American consumer debt will increase
Also, a LendingTree report from July 2022 predicts that 43% of Americans will acquire more debts in the second half of the year.
According to the prediction, credit cards and vehicle loans will account for more than 30% of all indebtedness.
Increasing debt may “either (be) a sign of confidence or struggle, and I guess we’re seeing the effect of both those in our data,” according to LendingTree’s Chief Credit Analyst Matt Schulz.
Schulz continued that :
“Many people take on debt because they feel good about their financial situation and aren’t too worried about paying a little interest if it gets them what they want or need. Plenty of others take on debt because they have to. There’s no question that both situations are happening right now.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Annie
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American Spending Exceeds Its Income, According To Research
According to research, Americans are currently spending more than they are earning due to growing inflation, which has resulted in the accumulation of additional debt.
According to a June 2022 poll by LendingClub Corp. and Pymnts.com, Americans may have increased their spending over the first half of the year.
Bloomberg also reported that these consumers represent about 13% of the nation’s total population ie roughly 34 million people.
15.4% of inhabitants, according to a breakdown of the statistics, don’t have any savings. Another 22.2% of people have no savings at all. Additionally, while just 29.3% of residents have savings totaling more than $15,000, more than 30% have between $1,000 and $15,000.
Following a 9.1% increase in consumer prices in July, the United States had its highest inflation rate in 40 years. In August, the inflation rate decreased to 8.5%.
In order to pay for their everyday needs, many consumers have turned to using credit facilities, which has reduced savings and increased debt. The poll also showed that some households now live paycheck to paycheck.
Experts predict that American consumer debt will increase
Also, a LendingTree report from July 2022 predicts that 43% of Americans will acquire more debts in the second half of the year.
According to the prediction, credit cards and vehicle loans will account for more than 30% of all indebtedness.
Increasing debt may “either (be) a sign of confidence or struggle, and I guess we’re seeing the effect of both those in our data,” according to LendingTree’s Chief Credit Analyst Matt Schulz.
Schulz continued that :
“Many people take on debt because they feel good about their financial situation and aren’t too worried about paying a little interest if it gets them what they want or need. Plenty of others take on debt because they have to. There’s no question that both situations are happening right now.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
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