What percent of Americans are behind on bills?
The survey also found that 37% of Americans are behind on monthly bills, which jumps to 53% among parents with young children. Additionally, 61% reported that inflation has impacted their ability to afford their lifestyle.
A new study released by LendingTree found 29.6% of residents in the nation's 100 largest metros were behind on at least one debt payment during the third quarter of 2023, and 27.3% had serious delinquencies that were over 90 days past due or more. More than a quarter, 26.2%, had debt in collections.
Almost three-quarters of Americans (73%) are struggling financially, mainly due to the aftermath of COVID-19, according to a Real Estate Witch study conducted by Clever.
Behind the numbers (NerdWallet):
The survey found that 83% of Americans say they overspend, and a similar proportion who have a monthly budget (84%) say they exceed it.
Nearly one in four (22%) of U.S. adults have no emergency savings at all, Bankrate found—the second-lowest percentage in 13 years of polling. That's especially bad news given that most Americans would need at least six months of emergency savings to feel comfortable day-to-day.
Several recent analyses have come to similar conclusions, finding that Americans are increasingly falling behind on their debts. The trend may even be accelerating in 2024.
27.3% of consumers across the 100 metros have debt that's seriously delinquent (overdue by 90 days or more), while 26.2% have debt in collections.
After inflation, high interest rates, unattainable housing prices and other economic factors, 50 percent of U.S. adults say their overall personal financial situation is worse than it was in November 2020, according to October 2023 Bankrate polling.
More than half of Americans (58%) report being able to live within their means and not worry about making ends meet, while fewer than half (40%) feel they are in good or great financial shape, and one in four (23%) say they are in poor shape.
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
How many Americans are in debt?
40% of Americans Have Been in Credit Card Debt for More Than 5 Years. The survey found that 47% of Americans have not been debt-free since 2018 to 2022, 14% have not been debt-free since 2013 to 2017, 11% have not been debt-free since 2008 to 2012 and 15% haven't been debt-free since before 2008.
Even more alarming, 25% of Americans said their net worth is $0 or negative — meaning they owe more in debt than the value of their assets. Upside App: Is Getting Cash Back a Smart Way To Boost Your Savings? Here's a closer look at why a quarter of Americans have a net worth of $0 or less.
U.S. Household Debt Is at an All-Time High
The total household debt of $17.3 trillion entering 2024 is a new high for the U.S. The largest increase in any category was credit card debt, which swelled by 16.6% between Q3 2022 and Q3 2023, the most recent term for which federal data was available.
The harsh truth is that $1,000 per month is very hard to live on, even if you lower your costs to the bare minimum. With inflation causing the prices of goods and services to increase every year, $1,000 a month will become harder and harder to live on going forward.
Get a Part-Time Job or Side Hustle. If you're contemplating retirement with no savings, then you may need to find ways to make more money. Getting a part-time job or starting a side hustle are two ways to earn money in your spare time without being locked into a full-time position.
Empower data shows that the majority of Americans contribute to a retirement plan (70%), though contributions vary by generation: Only 47% of Gen Zers say they save in a retirement plan, such as a 401(k) or 403 (b), compared to 75% of Millennials and 76% of Gen Xers.
Nearly half of Americans will start 2024 in the red
While nearly three quarters of Americans (72%) say they have clearly defined personal finance goals for 2024, many will start in the red. According to the study, nearly half of Americans (46%) expect to have credit card debt heading into 2024.
The latest data from the Harvard Joint Center for Housing Studies, released in January, found that a record high 22.4 million renter households — or half of renters nationwide — were spending more than 30% of their income on rent in 2022.
We have George Washington on the $1 bill, Thomas Jefferson on the $2 bill, Abraham Lincoln on the $5, Andrew Jackson on the $20, and Ulysses S. Grant on the $50. Alexander Hamilton and Ben Franklin were never presidents, but they are featured on the $10 and $100 bill, respectively.
40% of Americans struggle to afford their monthly bills compared to last year. Late payments aren't the only impact inflation has had on Americans.
How many Americans can't pay their debt?
While the number of delinquencies was lower than in 2019, there were more borrowers in delinquency at the end of 2022. Some 18.3 million people were behind on a credit card at the end of 2022 compared to 15.8 million at the end of 2019, the New York Fed reported.
In May CNN reported that nearly 20 million American households are behind on their utility bills. That same month the U.S. Energy Information Administration reported that Americans' residential electricity bills rose 5% in 2022, after adjusting for inflation.
If it seems like your paycheck disappears as quickly as it hits your bank account, you're not alone. More than 60% of Americans live paycheck to paycheck as of September 2023, according to a LendingClub report. Even people in higher income brackets are affected.
At the end of 2022, 73 percent of adults were doing at least okay financially, meaning they reported either “doing okay” financially (39 percent) or “living comfortably” (34 percent). The rest reported either “just getting by” (19 percent) or “finding it difficult to get by” (8 percent).
By the numbers: 63% of Americans rate their current financial situation as being "good," including 19% of us who say it's "very good."
