The Consumer Financial Protection Bureau (CFPB) noted a survey examining household financial health pointed to a decline after several years of increased savings.
The CFPB indicated the Making Ends Meet report, compiled from surveys mailed to a sample of consumers in January, with responses collected between January and March, revealed data from early 2022 showed a decline in several key measures, in addition to deterioration in financial health for Hispanic consumers, consumers under the age of 40 and low-income renters.
According to the CFPB, many consumers are not financially prepared for a disruption to their main source of income.
Other findings, per the CFPB, include nearly 37 percent of responding households reporting they could not cover expenses for longer than one month, even with accessing savings, borrowing money, selling assets, or seeking help from family and friends; this year 1 in 8 households experienced lost income from unemployment or reduction in work hours, and one-third of households experienced a major unexpected expense; while racial and ethnic groups applied for credit at similar rates, Black and Hispanic consumers were more likely to be turned down or not receive as much credit as they requested. With regard to renters, 31 percent missed at least one rental payment in the previous year, and 8 percent were not current on their rent as of February 2022.