Financial Struggles Increase as Savings Decline and Debt Rises: Data Comparison

Americans are facing increasing financial struggles as savings dwindle and debt rises, according to recent data comparing the Trump and Biden-Harris administrations.

The personal savings rate has plummeted to 3.4% as of June 2024, a stark contrast to the nearly 20% rate in January 2021. Real disposable personal income per capita has also dropped significantly, from 14% in January 2021 to 0.51% in June 2024.

Household debt has surged to $17.80 trillion, with credit card balances reaching a record $1.14 trillion in the second quarter of 2024. Delinquency rates for credit cards, auto loans, and mortgages have also increased, with approximately 9.1% of credit card balances and 8% of auto loan balances being delinquent.

The rise in debt and delinquencies has led to a spike in car repossessions, which were up 23% by July 2024 compared to before the COVID-era lockdowns in 2019. High interest rates on auto loans have contributed to the financial strain, with many struggling to make monthly payments.

A New York Fed economic researcher expressed concerns six months prior to the increase in debt and delinquencies, noting that younger and lower-income households were facing heightened financial stress. Many families have resorted to using credit cards to cover basic expenses, draining their savings, or turning to payday loans.

President Joe Biden’s assertion that the country is “moving in the right direction” contrasts with the majority of Americans’ views. A recent poll found that 65% of voters believe the country is heading in the wrong direction, with inflation and price increases remaining top concerns.

As Americans continue to grapple with financial challenges, the impact of rising debt and dwindling savings is being felt across the country.