The latest release from the Bureau of Economic Analysis shows the personal saving rate has dropped to its lowest point since June 2022.
Delinquency rates remain "elevated," according to the NY Fed, especially on student loans.
And economists wonder how long those who are better-off can even keep it up.
The amount we are paying in interest on this debt — as a percentage of our income — has been climbing.
Mortgage debt has grown 30% since before the pandemic. But the majority of mortgage debt holders have rates below 5%.
Just before the pandemic, the New York Fed found that about 9% of people had bills that ended up in collections. Now, less than 5% do.
Who’s taking on debt for what reasons, and why paying it down is good for your financial and mental health.
It’s good news for our personal economies, but it means we’re not spending as much to prop the economy as a whole.
About 1 in 6 households reports having more debt now than before the COVID-19 crisis.
It can be indication to banks that you’re unlikely to pay at all.
