A recent LendingClub report indicates challenging economic conditions for many Americans, a situation that could impact President Joe Biden’s chances for reelection next year.
As the holiday season draws near, the report, highlighted by CNBC, shows that about 60% of Americans are living paycheck-to-paycheck amidst high inflation and increased gas prices since Biden took office. Additionally, 40% of consumers now feel their financial situation is worse than in 2022, based on data collected in October.
CNBC also reported on a 2023 Deloitte survey predicting record holiday spending during Thanksgiving week, with an expected 13% increase from last year and average spending of $567 per shopper. However, this increased spending comes amid broader financial stress.
Credit card debt has surpassed $1 trillion, according to a TD Bank survey. CNBC noted that nearly all shoppers (96%) expect to overspend this holiday season. An Ally Bank report found that half of the consumers plan to incur more debt, with only 23% having a plan to clear it within one to two months.
Moreover, a CNBC Your Money Financial Confidence Survey in August revealed that 74% of Americans are stressed about finances, influenced by inflation, rising interest rates, and insufficient savings. The survey also showed an increase in the number of Americans living paycheck-to-paycheck, from 58% in March to 61%.
Despite the Biden administration’s promotion of its economic policies (dubbed “Bidenomics”), the public remains skeptical. A Fox Business report in October highlighted a significant 34% increase in home foreclosures since the previous year, reflecting ongoing financial struggles for many homeowners.
Rob Barber, CEO of ATTOM, attributes this rise partly to the pandemic’s lingering financial effects and the processing of pending foreclosure filings, especially after the lifting of a federal moratorium on most foreclosure actions.
The outlet continued:
Real estate experts are bracing for a significant blow to the market since the pandemic-era freeze on federal student loan payments officially came to an end at the beginning of October.
A recent poll conducted by Pulsenomics found that most economists said homeownership rates will be affected for at least a year by the resumption of student loan payments – and many predicted the impact could be longer than that.
More than 75% of the survey respondents said that the payments will have a negative effect on homeownership that lasts for a year or more. About 40% predicted an even longer impact of at least three years.