NEW YORK—Households are facing a shrinking reserve of savings and a growing mountain of high-interest consumer debt, another report as found.
In its analysis, Investopedia pointed to the increases in the cost of living over the past two years have eaten away more than half the stockpile of savings that households amassed during the pandemic at the same time credit card debt has soared to record levels, according to the latest government data.
As CUToday.info has regularly reported, consumer surveys have found significant worries among Americans over their financial situations.
The total amount of revolving debt (mainly credit card debt) ($1.22 trillion) held by Americans in February surpassed the total amount of extra savings ($1.20 trillion) households built up during the pandemic, Investopedia stated.
‘Dampen Retail Spending’
“The combination of declining savings and increasing debt will leave consumers with less money to spend, which will likely dampen retail spending,” Xander Snyder, a commercial real estate economist for title insurance company First American, stated.
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