A recent survey by the American Consumer Credit Counseling shows that inflation is causing consumers to fall deeper into debt. Nearly half of consumers have been unable to contribute any money to savings in 2022 with nearly 20% reporting significant reductions in their savings. Paying basic necessities is preventing nearly half of consumers from contributing to savings.
While the hot housing and job markets have blunted the issues facing consumers, it has been a difficult 2.5 year stretch for consumers and their money. A run of events, such as the pandemic, inflation, and wars has made the current standing of the consumers unstable at best.
Things look like they will only get worse as another study by Lending Tree found that half of all consumers expect to go into significantly more debt in the next 6 months. This number is even higher for young adults and parents with young children. Most consumers say they have no choice but to rely on credit cards to bridge the gap between what they need and what they can afford.
The bottom line is that higher prices are taking a major toll on family savings. I believe the most likely scenario is that by the time consumers are in a better position financially they will be saddled with an unpayable amount of credit card debt. That is why it is important to plan for the long term and speak to Florida Consumer Lawyers about strategies to get rid of debt before your financial situation improves.