CHICAGO–A new survey conducted during September has found 52% of Americans say the pandemic has affected their personal finances, an increase from the 47% found in a similar survey in May.
Most commonly, the survey found U.S. adults report they have used savings for daily expenses (22%), increased credit card spending (16%), or applied for unemployment benefits (12%).
Even so, nearly half of adults (47%) are extremely or very confident in their ability to meet their future financial obligations.
Both the May and September surveys were conducted by BAI and the National Foundation for Credit Counseling and focused on the effects COVID-19 has had on consumer spending and saving habits. This survey was conducted online by The Harris Poll among more than 2,000 U.S. adults..
The survey, conducted in September 2020, finds 52% of Americans noting the pandemic has affected their personal finances – more so than in May 2020 (47%). Most commonly, U.S. adults report they have used savings for daily expenses (22%), increased credit card spending (16%), or applied for unemployment benefits (12%).
‘More Uncertainty’
“More consumers are facing uncertainty and experiencing pressure in how they manage short term cash flow,” said Debbie Bianucci, president and CEO, BAI. “Since our last survey in May, financial services leaders have responded to changing customer needs in a variety of innovative ways including short-term small-dollar lending, payment deferments, and the suspension of certain fees. These actions have been designed to help consumers effectively meet their short-term financial obligations. With more consumers under pressure, strategies such as these will continue to be critical in navigating the impacts of the pandemic.”
The BAI/NFCC survey found that as the pandemic continues, more than half of Americans (57%) find some factors make it more difficult to pay down their debt. The most common challenge is the reduction of income (22%), which has increased significantly since both March 2020 (19%) and March 2019 (17%). Other common challenges for consumers to minimize debt include financial emergencies (19%), fees/interest rates (15%), and/or the inability to find room in the budget to increase debt payments (14%).
‘Debt Management Challenges’
“Financial services leaders recognize the debt management challenges many of their customers face amid the uncertainty caused by the pandemic,” said Karl Dahlgren, managing director, BAI. “Financial services organizations have been committed to supporting consumers with the implementation of a variety of pandemic relief measures including fee reduction or deferral, new debt repayment plans and proactive assistance programs for vulnerable and impacted communities.”