The world was taken by surprise when the coronavirus first started wreaking havoc on our lives. Professionals and business owners around the world have experienced a sudden income shock that occurred without warning.
Coronavirus & Personal Finance – Highs and Lows
As the economy switches from a phase of fear to a gradual restart, there are stark questions about personal finances after the Covid-19 outbreak. More and more people in developed countries like the U.S. and those in Europe have lost or are losing jobs because of business closures and staffing reductions.
The economic impact of the pandemic was huge and immediate, with domestic consumption being disrupted and consumers also cutting spending. The shift was also seen in the travel and tourism industry which saw mass cancellations and travel restrictions, as well as a major shift towards spending on healthcare.
To get a better idea about how exactly the Coronavirus pandemic has affected personal finance in the United States, we are going to take a look at some personal finance and credit stats.
- There has been a 6% decline in personal spending since the outbreak of the pandemic.
- The current personal savings rate in the United States is at 33%.
- 44 million people have claimed unemployment in the last 13 weeks in the country.
- There are 106 million consumer loan accounts that are either in deferred payment, forbearance, or natural disaster status.
- 16% of consumers are currently refinancing their debt.
- The average budget shortfall per household is currently at $985.
- Almost 26% of people have cut back on retirement savings.
- 40% of US citizens are more concerned about rent and bill payment due dates on time than the Covid-19 pandemic itself.
- 60% of consumers are discussing new payment plans for their credit accounts.
- 16% of Americans have concerns about feeding themselves and their families during the pandemic.
- The percentage of US citizens who are experiencing job loss or are on furlough has increased to 27%
- 38% of US citizens will miss a utility payment within the next 6 months.
- 21% of people are using their credit cards to pay for utility bills.
- 36% of consumers are using their credit cards to pay grocery bills.
- The United States Government is currently spending 38% of its GDP to deal with the Coronavirus pandemic.
While the above metrics present a grim picture of personal finances during the coronavirus, not all hope is lost. In fact, as more people are forced to use lines of credit more than ever before, there are certain benefits to the situation. This is represented by the following metrics.
- 30% of people have cited less eating out as one of the top reasons they are saving money.
- 55% of people have mentioned the reduced travel costs as the major reason they are saving.
- 22% of Americans have saved more than $1000 during the Coronavirus pandemic.
- 47% of Americans are spending less than they did before the pandemic.
- 20% of Americans are planning to reduce their debt burden after the pandemic.
Consumers in the USA are managing their personal finances wisely during the pandemic.