Consumer debt in America continues to climb with no end in sight, with the average U.S. household owing more than $155,000 — an increase of more than six percent over last year. Homebuyers may soon be able to capitalize on a slowing housing market, but supply chain issues that arose during the pandemic continue, and federal relief measures to help American households are no longer in play.
As debt continues to increase, so do financial shocks, which Pew defines as a significant loss of income or a major unexpected expense. Sixty percent of Americans experience financial shock and one-third experience two or more per year. This puts more financial pressure on American families, nearly 70% of whom don’t have emergency savings. These costs are typically around $2,000 — representing half a month of income for the median household.
