16.15 TRILLION IN DEBT: more and more families in the red

As inflation continues to it becomes more difficult for Americans to maintain their lifestyles. According to a recent report by LendingClub Corporation, the number of Americans living day-to-day increased to 61% so far in 2022.

On gasoline alone, U.S. households spend the equivalent of $5,000 a year, an increase of approximately $3,800 compared to March, according to data from business and investment consulting firm Yardeni Research. Supermarkets are where prices are rising at the fastest pace in decades. Food prices were 9.1% higher in April 2022 than in April 2021, the largest annual increase in 41 years, according to the Bureau of Labor Statistics.

Consumers are finding it difficult to manage spending . Their savings decrease and consumer prices increase. Some 40% of citizens have had trouble paying their bills, which means they have not reduced their spending, says LendingClub's Director of Financial Health, Anuj Nayar:

"Consumers are still not curbing their spending habits, despite the rising cost of living. Not only are they going to find it difficult to meet future emergency expenses, but even expected payments, such as education, student loans or housing costs, may be more difficult for the everyday American consumer to balance."

All are getting worse

People between the ages of 20 and 40 are the most affected. In addition, 77.6% of Americans earning $50,000 or less per year are not able to save and live month to month. Thirteen months ago, in May 2021, it was 71.7%, which means that this percentage has risen by six points. Even families with higher incomes find it difficult to pay their expenses and save. According to the report, it is the families earning more than $100,000 a year that have seen their situation change the most, as in just one month, from May to June, the percentage of those living month-to-month has risen by 11 points. Already 45.3% are in this situation. For median incomes of $50,000 and $100,000 per year, there is an increase of 7.2 percentage points. 60.1% are unable to save.

The elderly also have trouble making ends meet, with more than 50% of women and 45% of elderly men unable to pay their basic expenses. According to a study conducted by the University of Massachusetts-Boston, more than half of older women living alone live in poverty by federal standards, while 45% of men also lack sufficient resources to cover essential expenses.

Largest increase in credit card debt in 20 years

On the other hand, as published by the New York Federal Reserve, householddebt exceeds 16 trillion (trillion) in the second quarter of 2022. Household indebtedness has not stopped rising since 2013, and is at the end of June at 16.15 trillion.

The largest component of household debt is mortgage debt, which stands at $11.39 trillion. Most strikingly, credit card debt has experienced the highest growth in 20 years: 13%. The main reason is inflation: rapidly rising prices force families to consume savings or increase their debt to maintain their standard of living.