Survey Says Americans Prepare for A Recession by Paying Off Debt
TEHRAN (FNA)- While 81% of middle-income survey respondents said they expected a recession this year, 62% said they are planning to or have already taken measures to face these challenging economic times, according to a recent survey.
For many that has meant taking control of their debt, Primerica’s fourth quarter 2022 Middle-Income Financial Security Monitor said. Thirty-nine percent of respondents said their top goal for this year was to pay off debt and 37% said they wanted to keep debt manageable, Fox News reported.
Despite concerns over inflation and a pending recession, 53% of respondents said they felt optimistic about their finances heading into 2023. Only 15% said they expected their finances or the US economy to improve by next year.
"As middle-income families prepare for a possible recession this year, it’s more vital than ever that they take control of their personal finances by addressing debt, setting a budget and keeping spending in check," Glenn J. Williams, CEO of Primerica, said in a statement.
If you are struggling to pay off debt, you could consider using a personal loan to consolidate your payments at a lower interest rate, saving you money each month. You can visit Credible to find your personalized interest rate without affecting your credit score.
Inflation and rising costs have made it more challenging for Americans to cut back on debt, the survey said.
Inflation dropped 0.1% in December to register a 6.5% increase, the first outright monthly decline since May 2020. The positive inflation data is expected to ease the pace of interest rate hikes the Federal Reserve is expected to undertake this year, which has helped soften mortgage rates.
However, there are signs that consumers, struggling with rising costs, have increasingly relied on debt to make ends meet.
Thirty-six percent of survey respondents said they used their credit cards more often in the past year, up from 27% saying the same a year ago. Further, 37% said their credit card debt has increased in the past three months, up eight percentage points from December 2021.
"Credit card debt is at the highest point in Monitor history as it continues to increase quarter to quarter," the survey said.
Additionally, of the 59% who said they had an emergency fund to cover an expense of $1,000 or more, half (51%) said they had to use it in the past 12 months.
"Three-quarters (74%) of middle-income families report not being able to save for their future, up from 66% a year ago," Amy Crews Cutts, Ph.D., an economic consultant to Primerica, said in a statement, adding, "Inflation over the past year, especially in non-discretionary items like food and gasoline, has hurt the financial security of families as it was impossible to avoid."
TEHRAN (FNA)- While 81% of middle-income survey respondents said they expected a recession this year, 62% said they are planning to or have already taken measures to face these challenging economic times, according to a recent survey.
For many that has meant taking control of their debt, Primerica’s fourth quarter 2022 Middle-Income Financial Security Monitor said. Thirty-nine percent of respondents said their top goal for this year was to pay off debt and 37% said they wanted to keep debt manageable, Fox News reported.
Despite concerns over inflation and a pending recession, 53% of respondents said they felt optimistic about their finances heading into 2023. Only 15% said they expected their finances or the US economy to improve by next year.
"As middle-income families prepare for a possible recession this year, it’s more vital than ever that they take control of their personal finances by addressing debt, setting a budget and keeping spending in check," Glenn J. Williams, CEO of Primerica, said in a statement.
If you are struggling to pay off debt, you could consider using a personal loan to consolidate your payments at a lower interest rate, saving you money each month. You can visit Credible to find your personalized interest rate without affecting your credit score.
Inflation and rising costs have made it more challenging for Americans to cut back on debt, the survey said.
Inflation dropped 0.1% in December to register a 6.5% increase, the first outright monthly decline since May 2020. The positive inflation data is expected to ease the pace of interest rate hikes the Federal Reserve is expected to undertake this year, which has helped soften mortgage rates.
However, there are signs that consumers, struggling with rising costs, have increasingly relied on debt to make ends meet.
Thirty-six percent of survey respondents said they used their credit cards more often in the past year, up from 27% saying the same a year ago. Further, 37% said their credit card debt has increased in the past three months, up eight percentage points from December 2021.
"Credit card debt is at the highest point in Monitor history as it continues to increase quarter to quarter," the survey said.
Additionally, of the 59% who said they had an emergency fund to cover an expense of $1,000 or more, half (51%) said they had to use it in the past 12 months.
"Three-quarters (74%) of middle-income families report not being able to save for their future, up from 66% a year ago," Amy Crews Cutts, Ph.D., an economic consultant to Primerica, said in a statement, adding, "Inflation over the past year, especially in non-discretionary items like food and gasoline, has hurt the financial security of families as it was impossible to avoid."
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