62% of Americans are living paycheck to paycheck, as holiday spending, credit card debt rise | CNBC
In its recent policy meeting, the Federal Reserve announced that while inflation has slightly eased over the past year, prices remain elevated. Despite this, a concerning trend persists among households: a significant portion of adults continue to live paycheck to paycheck, with 62% reporting this financial struggle, according to a LendingClub report.
As the holiday season approaches, there’s optimism in the retail sector. As per the National Retail Federation, holiday spending is projected to reach a new record, with an expected increase of 3% to 4% over the previous year, totaling between $957.3 billion and $966.6 billion. However, there’s a striking paradox: even as credit card debt exceeds $1 trillion, a TD Bank survey found that 96% of shoppers anticipate overspending. Half of consumers intend to take on additional debt to cover holiday expenses, while only 23% have a plan to pay it off within one to two months.
This scenario raises an important question: In a time of economic uncertainty and high consumer debt, how can individuals better manage their finances, especially during increased spending like the holidays? What strategies can be employed to strike a balance between enjoying the festivities and maintaining financial stability?………
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Rising Dough
How can individuals effectively navigate the challenges of holiday spending and rising consumer debt in today’s economic landscape?
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