Nearly 20% of individuals nationwide have disclosed that they have skipped or delayed paying a bill in the past six months in order to meet their monthly expenses, or at least come as close as possible to meeting them, according to the results of a national poll. Those skipped expenses include not paying for medical visits, credit card balances, rent or mortgages. For individuals making less than $50,000 a year, nearly 25% have skipped a rent or mortgage payment, according to the poll.
Just about everyone is feeling the pinch of rising costs for goods and services and wages that are not increasing fast enough to keep up. The cushion that many benefitted from during the pandemic has flattened out and people across all income levels and demographics are struggling.
Overall, 37% of Americans say their financial situation has worsened, compared with 29% who said so in February. Interestingly enough, 23% said their financial situation has improved, compared with 18% in February.
Along with choosing some important expenses to skip, consumers are also cutting back in other areas. More than half of the survey’s respondents said they are eating out less, 40% are driving less or carpooling to save on gas, 39% have cut back on groceries, 35% have skipped a vacation or changed travel plans, and 18% have skipped a doctor’s visit or chosen not to fill a prescription.
Inflation is largely being cited as the reason why consumers are feeling the economic pinch more, because the job market remains strong and the unemployment rate remains relatively low. The feeling is that something is missing — people are paying more and getting less than they have in years past.
Perhaps the most worrying data point is this: 27% of Americans — including 33% of those earning less than $50,000 a year — have used up a “great deal” or “good amount” of their savings to make ends meet. As those savings accounts run dry, the situation is only going to get worse, which means further cutbacks and more difficult choices that need to be made.
Some people. though, might not be telling the whole truth. While more than 50% of the survey’s respondents said they are eating out less, spending at restaurants is up 7% year-over-year, according to data released by the Commerce Department. While inflation and rising prices could account for the increase in spending, it is clear that consumers are not as free-wheeling and carefree as they have been.
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