Financial stress is on the rise for Americans, as inflation, economic instability and a lack of savings take their toll.
According to a new CNBC survey, 70 percent of Americans admit to being stressed about their personal finances. Over half (52 percent) said their financial stress has increased since before the Covid-19 pandemic began in March 2020.
Inflation has been a main contributor to financial stress. The cost of the basic household expenses — rent, groceries and utilities — are much higher than a year ago, but salaries have maintained roughly the same.
The survey also found that most Americans (58 percent) are living paycheck to paycheck, struggling to make ends meet and relying on credit cards to cover any shortfalls. Of course, high credit card debt doesn’t help financial stress, either. Government data shows credit card balances are rising, and delinquency rates are increasing.
And unfortunately, many Americans feel as if they don’t have an adequate emergency fund to fall back on. Only 45 percent of U.S. adults said they have one, and for those who do have emergency savings, about 26 percent polled said they have less than $5,000 saved.
According to Bruce McClary, a senior vice president at the National Foundation for Credit Counseling, “There’s almost no segment of the population that is untouched by the financial pressures that we’re experiencing more broadly at this time.”
