Americans Struggling To Pay Bills

Cadrene Heslop

Experts are questioning the state of the American economy. Some financial analysts wonder if the US economy is already in a recession. The debate is among investors, economists, politicians, and central bankers. (source)

These groups note the warning signs of a recession are present in the financial market. Evidence shows consumers are having trouble making on-time bill payments. The findings are from credit card companies and wireless carrier reports. (source)

Delinquency has seen a moderate increase. Companies note some people are paying off their bills more slowly. As a cautionary move, banks have increased reserves for future credit losses. The causes are also the macro-economic issues facing the American economy. This explanation is the one given by Richard Fairbank. Richard Fairbank is the CEO of Capital One. Richard explained. (source)

"The big headwinds for consumers are price inflation and higher interest rates. And inflation could erode the excess savings consumers accumulated through the pandemic, especially if price increases continue to run ahead of wage growth."
Photo by Artem Beliaikin on Unsplash

Are recessionary signals showing among wealthier groups?

Despite the challenges of some consumers, wealthier ones have not reduced their spending. Travel and entertainment spending have made a robust rebound. In some of those categories, expenditure has surpassed pre-pandemic levels. But companies and analysts are cautious that the behavior might change in the future. (source)

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*Disclaimer: This article is for informational purposes only. This article got written using corporate postings and accredited media reports.*

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