As more American households struggle to cover basic expenses, nearly 40% are falling behind on their bills. How did the cost of living spiral so far out of control?
Can’t Afford Bills
According to CNN, nearly 40% of Americans are concerned that they can no longer afford their monthly bills. With the cost of living as high as it’s become, it’s putting consumers in a critical financial state.
Polling Statistics
CNN completed a poll in June 2024 that revealed how the general American public feels about the state of the economy. These statistics spanned three years.
Cut Back On Extras
The CNN polls suggest that as many as 69% of individuals and families cut back on extra spending in 2024, June. Compared to 2023, May 2022, only 63% said they needed to cut back.
Changed Grocery Regulars To Fit Budget
American consumers said they had to change what they regularly bought for groceries to help keep within the budget.
Polls on Grocery Change To Fit Budget
In June this year, 68% said they had to do this, while only 31% said it wasn’t necessary. Compared to 2021 December, it was almost a 50/50 split where 54% had to, and 46% said it wasn’t required.
Driving Less
According to the poll in 2024 June, as many as 41% of American consumers are using their private transport to get around or commute to and from work. Cutting back on how much they drove their vehicles was an effort to save money.
More Credit
Americans struggle to keep up, and 37% admitted to taking on more credit to survive from month to month. 63% of individuals said it wasn’t necessary and could manage without additional credit to their name.
Statistics Affect Minority Groups
CNN reported that the majority of people who said it has become hard to survive and fear they cannot pay bills are Latin Americans and African Americans. Reports say 52% are Latin Americans and 46% are Black Americans.
Less Than $50K per Year
Many Americans earning around $4,000 a month also struggle with monthly costs, fearing they cannot pay their bills.
Stats Only Show So Much
Some show a positively cooling economy, but the effects are not felt amongst the consumers, who are the main drivers of the GDP.
From the Fed
Jerome Powell, the U.S. Federal Reserve Bank Chair, told Morning Star, “Conditions have returned to aout where they stood on the eve of the pandemic, strong, but not overheated,” he said.
“Stall Speed”
“Stall speed” refers to a very slow economic growth rate. In the U.S., the economy is growing by 2%. U.S. Bank Wealth Management’s senior investment strategy director, Rob Hayworth, called the economy’s growth “stall speed.” The rate at which consumers spend may be slow, but it’s consistent.
Less Than Last Year
Compared to last year, the U.S. Bank pointed out the Bureau of Economic Analysis’ findings, which showed that the first quarter of consumer spending was slow but present. In 2023, the growth was faster in the fourth quarter.
Massive Insurances
A CDC analyst, Angela Russell, told CNN that she, too, struggles to keep up with costs. She mentioned that “everything has gone up” from clothing to insurance.
Moving to an Affordable Place
Russell told CNN that she moved from her rental based in Cincinnati to a rural area because the rentals were more affordable.
Americans Move… Alot
An article published by NASDAQ last December said the average U.S. citizen could move about six times between the ages 18 and 45.
Why Do Americans Relocate So Often?
People move for many reasons, including being closer to their work, upsizing and downsizing, and for better rentals or house costs.
Average American Homes Spend
Moody Analytics shows the average American family can spend around $900 more than they may have spent maintaining house expenses in 2021.
The Pandemic Caused a Lot of Financial Damage
Before the pandemic, people had “more” money left over. After that, the country struggled to keep the cost of living afloat.
Still Affected Financially and Some Medically
The unfavorable economic effects resulting from covid continue to hurt many consumers’ affordability to this day. Some direct impacts include loss of income and the inability to work because of long-term illness or job scarcity.
Alarming Rise of Long Covid
CDC data estimated that 18 million people in America are suffering from long-term illness, according to The Guardian. The effects can be debilitating for some; for others, it hampers their work and daily productivity.
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Featured Image Credit: Shutterstock / Artie Medvedev.
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