Nearly half of Americans say debt is affecting their health: Study
WASHINGTON - Household debt is increasingly become a source of stress for millions of Americans, according to a new study by WalletHub.
To better understand the challenges households face with debt, the company conducted a survey, which was based on nationally representative sample of 220 respondents.
The financial data company found that nearly half of Americans (48%) reported that their household debt was negatively impacting their health.
The study also found that Americans are struggling to keep up. A majority of Americans (58%) admitted they are struggling to manage their debt. This could include challenges in making monthly payments on time, staying within budget, and avoiding high-interest fees that come with credit card balances.
FILE: Selective focus shot of worried young woman sitting at her home office desk, head in hand, sorting out her monthly bills and expenses and struggling with finances. (Credit: Getty Images)
The survey also reveals that household debt influenced voters’ decisions. Nearly 3 in 5 Americans (58%) said their debt played a role in how they voted in the recent elections. The report suggested that the mounting weight of financial strain shaped their political preferences.
Credit card debt at forefront
Among the various types of debt that Americans are grappling with, credit card debt was the most common. The survey found that 51% of people reported struggling with credit card balances, which often carry high-interest rates and make it difficult for borrowers to break the cycle of debt. This was followed by concerns about mortgage debt (18%) and student loans (15%), which are also significant burdens for many households.
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And the outlook for debt management isn’t encouraging. Nearly 2 in 5 Americans (39%) said they expect their household debt to increase over the next 12 months, and half of Americans (50%) worry about the long-term impact their debt will have on their children.
Inflation increased in October
On Wednesday, the Department of Labor said that inflation in the United States ticked up in October, driven partly by costlier rents, used cars and air fares.
Consumer prices rose 2.6% from a year earlier, the department said, up from 2.4% in September. It was the first rise in annual inflation in seven months. From September to October, prices edged up 0.2%, the same as the previous month.
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Excluding volatile food and energy costs, "core" prices rose 3.3% from a year earlier, just as in September. From September to October, core prices rose 0.3% for a third straight month. Over the long run, core inflation at that pace would exceed the Federal Reserve’s 2% target.
Most economists, though, think inflation will eventually resume its slowdown. Consumer inflation, which peaked at 9.1% in 2022, has since fallen steadily, though overall prices are still about 20% higher than they were three years ago.
The Source
The report by WalletHub reflected the results of a nationally representative online survey of nearly 220 respondents. After WalletHub collected all responses, they normalized the data by age, gender and income so the sample would reflect U.S. demographics.