More consumers expect not to be able to pay their debts by the end of the year, according to data released yesterday by the Federal Reserve Board of New York.
According to the report, 12.77% of consumers expect not to be able to make minimum debt payments three months from now, up from 11.84% in July. The 12.77% is at its highest point since last October.
Breaking down the data, it was older consumers — above the age of 40 — who reported the jump. Fewer consumers under the age of 40 expect to miss a debt payment in the next three months, according to the report. Looking at the data geographically, consumers living in the Northeast and South were more pessimistic about their financial futures while those living in the West were actually more optimistic. People living in the Midwest felt pretty much the same about their ability to make debt payments.
When asked whether they think they will be better or worse off financially a year from now, 44.5% said they would be either much better off or somewhat better off, up from 41.4% in July. Just under 11% said they would be either much worse or somewhat worse off, down from 12% a month earlier.
Other highlights from the report:
- Fewer consumers expect to leave their jobs in the next year, either voluntarily or otherwise
- More consumers are uncertain about their earnings growth during the next year
- More consumers think credit will be easier to obtain one year from now
- Slightly more consumers think incomes will be higher a year from now