#economy #finance #money
Why Build Someone Else’s Dream. Start and Grow Your Side Hustle or Dream Business. Get worry-free services and support to launch your business starting at $0 plus state fees. Click the link now to Join ZenBusiness! ZenBusiness make it easy to start, run, and grow your dream business. ZenBusiness offers the tools, guidance, and expertise to help you be your own boss. Click the Link below:
[ Ссылка ]=

“This is your life. You want to get it right.”
– Mark Cuban on Starting a Business. He is a shareholder of Zenbusiness. It has earned an average rating of 4.6 stars on Trustpilot after more than 11,500 reviews.
[ Ссылка ]=

Many individuals share concerns about their financial well-being, and U.S. banks are issuing warnings of a credit crisis looming larger than the 2008 financial crisis. Unfortunately, this crisis is unfolding at a particularly challenging time for American households. Credit card issuers are tightening lending criteria, making it increasingly difficult for consumers to secure loans or access credit. This tightening of standards comes as more than three out of four households, or 77 percent, express anxiety about their financial situations, as revealed in a recent survey conducted by Capital One and the decision lab.

The financial strain on U.S. workers is evident, with the cost of living at an all-time high and wage growth failing to keep pace, americans are not able to make money at a steady rate. Real average hourly earnings have actually declined by 3.6 percent since January, and as of August, 60 percent of adults find themselves living paycheck to paycheck, according to data from the U.S. Department of Labor. These statistics underscore the widespread financial challenges affecting a majority of consumers who make money.

Lending Club's money expert, Senator Leah Dunham, aptly sums up the predicament, stating that there's more month left at the end of the money for many. Millions of seniors are delaying retirement due to insufficient savings, middle-class workers struggle to afford their children's education, and financially vulnerable families are grappling with the difficult choice of whether to allocate funds to food or rent each month. These challenges are driven by stubborn inflation, rising fuel and food costs, and elevated interest rates.

Notably, it's not only about making ends meet; it's also about escaping debt, which is becoming increasingly daunting for young Americans. This is particularly detrimental in a job market marked by scarcity and the burden of soaring student loan debt, hindering them from achieving the hallmark of adulthood – moving out of their parents' homes and living independently. In fact, almost half of young adults now reside with their parents as they grapple with low wages, student loan obligations, and limited purchasing power. CNBC reported that in 2023, 23 million or 45 percent of all Americans aged 18 to 29 are living with family, a rate not seen since the 1940s.

While the importance of family cannot be overstated, it's safe to say that many of these young adults would prefer independent living if they could afford it. A significant driver of this trend is the exorbitant cost of housing and rent, with the average monthly rent standing at $2,052. To avoid being financially burdened by rent, the average renter needs an income of $6,840 per month after taxes, and yet, around half of the nation's renters exceed this threshold. Housing prices are equally out of reach for most Americans, as a recent report found that home prices in 99 out of 575 U.S. counties are beyond the reach of the average money earner.

Mortgage rates have surged, with the average rate on a 30-year fixed mortgage reaching 7.4 percent, requiring an income exceeding $125,000 to qualify for a loan to purchase a $400,000 home. From 2019 to 2023, median-priced U.S. homes have soared from $313,000 to $416,000, representing a $103,000 increase in just four years.That is a lot of money. In essence, the median home price now stands at a staggering 530 percent of the median annual income, with median house payments consuming a record 49 percent of pre-tax income. This affordability crisis is permeating the entire economy, contributing to an increase in personal bankruptcies compared to the previous year.

As a result of these financial setbacks, more Americans are relying on credit cards to cover essential expenses such as rent, utilities, and groceries, in addition to larger purchases, marking a significant departure from past spending patterns when it come to their finance.

свернуть