While Americans may feel more upbeat about the economy than they have in a while, the United States consumer debt has surged to record highs, according to the New York Post. More Americans are spending beyond their means and have no money saved for emergencies.
The debt is being fueled by rising mortgage debt, student loans and the ease of obtaining available credit. One credit counselor to the Post the easy-to-obtain credit traps people into thinking they can buy what they want – regardless of their ability to repay that debt.
So, which Americans will feel the pinch of this debt first? Those living week-to-week on their paychecks, according to Bankrate. Bankrate says another recession could squeeze people further than what they already make paycheck-to-paycheck, leading to an increase in delinquencies.
Source: https://nypost.com/2019/07/14/us-has-a-savings-and-loan-crisis-consumers-owe-more-with-less-in-the-bank/
