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National News See other National News Articles Title: 12 Signs That U.S. Consumers Are Experiencing Far More Financial Stress Than Most People Realize Authored by Michael Snyder via The Economic Collapse blog, Consumer sentiment is plummeting, delinquency rates are rising, and nearly three-quarters of all U.S. consumers admit that they are “financially stressed”. If U.S. consumers are experiencing this much pain now, what will things look like six months from today if there are empty shelves and widespread shortages? We witnessed a brief period of severe financial stress during the early days of the last pandemic, but we would have to go all the way back to the Great Recession to find a time that is truly comparable to what we are enduring now. U.S consumers have been getting hammered for years, and now it appears that our problems are about to go to an entirely new level. The following are 12 signs that U.S. consumers are experiencing far more financial stress than most people realize… #1 According to the University of Michigan, consumer sentiment in the United States has fallen to the second-lowest reading ever recorded… Americans are rarely this pessimistic about the economy. Consumer sentiment plunged 11% this month to a preliminary reading of 50.8, the University of Michigan said in its latest survey released Friday, the second-lowest reading on records going back to 1952. #2 According to a new CNBC/SurveyMonkey poll, a whopping 73 percent of U.S. consumers admit that they are “financially stressed”… Americans are growing increasingly uneasy about the state of the U.S. economy and their own personal financial situation in the face of stubborn inflation and tariff wars. To that point, 73% of respondents said they are “financially stressed,” with 66% of that group pointing to the tariff wars as a main source, according to a new CNBC/SurveyMonkey online poll. The survey of 4,200 U.S. adults was conducted April 3 to 7. #3 Approximately two-thirds of U.S. adults feel like they are “behind on their savings goals”, and half of U.S. adults believe that they will never reach their savings goals at all… 67% of Americans feel behind on their savings goals, with nearly half (47%) believing they’ll never reach their targets #4 More than 60 percent of U.S. adults that currently have savings accounts have taken money out of them since the start of this year… 63% of people with savings accounts have withdrawn money since the beginning of 2025, primarily for unexpected expenses (48%) and everyday necessities (36%) #5 The percentage of U.S. credit card accounts that are at least 90 days past due has reached the highest level in 12 years… The percentage of credit card accounts that were at least 90 days past due hit a 12-year high in the fourth quarter of 2024. According to data from the Federal Reserve Bank of Philadelphia, 0.90% of accounts were delinquent, the most since the Fed bank began its report. #6 5 million student loan borrowers in the United States have not made a single payment in the last year, and 4 million other student loan borrowers will soon reach that status… Of the more than 42.7 million student loan borrowers in the U.S., who owe a collective $1.6 trillion, the department says that more than 5 million have not made a payment in the past year. That number is expected to grow as an additional 4 million borrowers are approaching default status. #7 For the first time in about 5 years, the Department of Eduction “will resume collections of its defaulted federal student loan portfolio”. This is going to put additional financial stress on millions of U.S. households… The U.S. Department of Education today announced its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5th. The Department has not collected on defaulted loans since March 2020. Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education. This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default. #8 The average credit score in the United States just dropped at the fastest pace since the Great Recession… America’s credit score just took its biggest hit since the 2008 crash. The average FICO score in the US has dropped to 715 from 717 — the largest one-year drop since the Great Recession, according to new data from the credit-rating giant FICO. #9 U.S. consumers are eating out less, and as a result restaurant chains all over the country are in financial distress… Once rapidly growing commercial marvels, casual dining chains — sit-down restaurants where middle-class families can walk in without a reservation, order from another human and share a meal — have been in decline for most of the 21st century. Last year, TGI Fridays and Red Lobster both filed for bankruptcy. Outback and Applebee’s have closed dozens of locations. Pizza Hut locations with actual dining rooms are vanishingly rare, with hundreds closing since 2019. According to a February survey by the market research firm Datassential, 24 percent of Americans say they are having dinner at casual restaurants less often, and 29 percent are dining out less with groups of friends and family. #10 U.S. consumers are visiting shopping malls a lot less than they once did, and as a result many mall retailers are going belly up… Merry Go Round, Bon-Ton, Lord & Taylor, The Limited, Loehmann’s, Bonwit Teller, Chess King, and Anchor Blue are just a few once-successful clothing retailers that no longer exist. Now, a once-trendy fashion/clothing retailer finds itself having to make massive cuts and shut down 100s of stores in a fight to avoid bankruptcy. #11 U.S. consumers are not spending as much money at hair salons, and Bloomberg is telling us that this is an indicator that a recession is coming… Stylists from Manhattan to rural New Hampshire are seeing regular clients start to skip cuts and blowouts. In from the Maine town of Brewer, hairstylist Alyssa Dow said customers are choosing cheaper, “more low-maintenance” looks—and tipping less. In affluent Longmeadow, Massachusetts, where “people don’t like to walk around with roots” showing, clients who previously got color every two or three weeks are stretching it to four or five, citing the “political situation” and implying they’ve lost money in the stock market, said Michelle LaValley. “They’re cutting back in other areas as well, so it’s not just us,” said the salon owner, who has 28 years in the business. The wider pullback in spending seems to go beyond the general grumpiness that accompanied the so-called vibecession that started years ago when inflation rose, interest rates spiked and yet the US kept growing. #12 According to the Fed, U.S. consumers are becoming more concerned about inflation and unemployment… The central bank’s monthly Survey of Consumer Expectations showed that respondents saw inflation a year from now at 3.6%, an increase of half a percentage point from February and the highest reading since October 2023. Along with concerns over a higher cost of living came a surge in worries over the labor market: The probability that the unemployment rate would be higher a year from now surged to 44%, a move up of 4.6 percentage points and the highest level going back to the early Covid pandemic days of April 2020. Right now, economists all over the country are arguing about whether a recession is ahead of us or not. But to millions of hard working Americans, it feels like a recession has already begun. If you are currently experiencing financial stress, I want you to know that you aren’t alone. Poster Comment: Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
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