Furthermore, the percentage of adults who are worried about their ability to manage their debt has increased from 42% in January 2022 to 45% in January 2023. Meanwhile, the average amount of credit card debt has risen from an estimated $6,941 in January 2022 to $7,538 in January 2023. For all income segments, everyday expenses continue to be the most common reason for credit card debt. That said, among those with household incomes of $75,000 or more, the incidence of carrying credit card debt has increased significantly, from 37% in January 2022 to 42% in January 2023. Consistent with a year ago, eight in ten adults ages 30-plus carry some form of debt month over month, with credit card debt mentioned most (43%). Increased debt can often be an outcome in times of high inflation. As a result of inflation, eight in ten (79%) have continued to adjust their lifestyle or shopping habits consistent with July 2022 behaviors, 50% say they cut back on extras during the past 12 months while 46% say they cut back on basic expenses. More specifically, 65% of those who indicate their finances are worse today than they were a year ago attribute their declining financial situation to higher household expenses, up from 56% who cited that cause in January 2022. Three-fourths of adults 30-plus (74%) remain worried about prices rising faster than their income. Inflation Worries Lingerĭespite slowing, inflation remains a concern. The main pain points stymying a full recovery appear to be increased expenses, debt payments, and a loss in savings. This January 2023 number, however, remains higher than the 22% of January 2022 respondents who reported a year-over-year decline in their financial situation.Įven though overall sense of financial security did not decline further from July 2022 to January 2023, it hasn’t returned to levels seen in January 2022 before the height of the inflation spike. Near the height of inflation last July (2022), a full one-third (33%) of respondents said their financial situation was worse than it was a year before, while this past January (2023), the percentage fell to 29%. However, there is some indication that people are feeling a bit better about financial matters than they have in recent months. The latest survey, conducted in January 2023 among 7,898 adults, reveals that overall sense of financial security remains lower than this time last year, with 58% rating their financial situation as good or excellent, compared to 61% in January 2022. Fielded across all 50 states and the District of Columbia, the survey includes oversamples of Black and African American adults, Hispanic and Latino adults, Asian American adults, and LGBTQ+ adults. It examines perceptions of overall financial well-being, debt, emergency savings, retirement savings, expenses, and financial worries. The survey is designed to monitor the financial experiences, behaviors, and attitudes of adults ages 30-plus. While high inflation shows some signs of slowing in 2023, it may take consumers a significant amount of time to recover-the latest semiannual AARP Financial Security Trends Survey finds.ĪARP has been monitoring the financial security of adults ages 30-plus for the past year through its semiannual Financial Security Trends Survey.
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