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.

American Spending Exceeds Its Income, According To Research

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

American Spending Exceeds Its Income, According To Research

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

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

31 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.