Fewer Consumers Expect to Have Problems Paying Debts: Report

The number of consumers who expect to be able to make all of their debt payments during the next three months increased again in June, nearing the highest point ever in the eight years that the Federal Reserve Bank of New York has been tracking the data. The continued increase in the number of consumers who don’t expect to have any problems making their debt payments may be a bad sign for companies in the accounts receivable management industry and may further illustrate declines in placement volumes that have been reported across the country.

Only 9.6% of consumers expected to not be able to make their minimum debt payments in June, which is just slightly higher than the 9.3% that was reported last October — the lowest point in the eight years that the bank has been tracking that data point.

Interestingly enough, when breaking down the data by different demographics, there are some inconsistencies. For example, the number of consumers over the age of 59 who say they likely will not be able to make their minimum debt payments is on the rise, although the figure is still well below the other age groups tracked by the bank. Individuals who make less than $50,000 a year are also more worried about their ability to meet their financial obligations, while those who make more are definitely not as concerned. As well, consumers living in the South and Midwest said they are more worried about their financial prospects, compared with consumers living in the West or Northeast.

Overall, consumers thought their financial situations will continue to improve during the next 12 months, that they are in a better financial position now than they were 12 months ago, and more consumers expected their household income to increase during the next 12 months. Fewer individuals projected they will lose their job in the next year, and more people who are out of work expected to be able to find employment.

Check Also

Senate Republican Working to Overturn Latest Eviction Moratorium

The leading Republican on the Senate Banking Committee is trying to get the latest eviction …

Leave a Reply

Your email address will not be published.

X