In the last three months, about half of Americans claim they have saved less than $500.
Direct payments from the $1.9-trillion American Rescue Plan began this month, with more expected to arrive this week. Individuals making less than $75,000 are eligible for $1,400 checks, and married couples filing jointly $150,000.
According to the Chicago Fed’s national activity index published earlier this week, the U.S. economy contracted in February for the first time since the worst period of the CCP Virus pandemic last April. In February, the index, which is used to measure overall economic activity in the United States, dropped to negative 1.09.
According to another survey, more than half of American consumers (56%) live “paycheck to paycheck,” and 48% have suffered unwanted financial losses in the last three months. About 70% of respondents said they are becoming more conscious of their spending habits.
The rescue bundle could not have arrived at a better time. Just 47% of those surveyed said they have a systematic financial plan. Following a survey released on Friday. March 26, by Travis Credit Union, 35% of people will spend more than they receive in 2020. Just 2% of respondents said they were optimistic about the economic prospect.
The MassMutual Consumer Spending & Saving Index released on Thursday showed that nearly half of U.S. citizens admitted their saving amount was $500 lower compared to the past three months, with 40% of them experienced loss of job and income reduction.
Black and Latino employees were more likely than white workers to experience housing deprivation as a result of the pandemic. During the CCP Virus outbreak, black people were more vulnerable to trouble paying their monthly rent checks than white people.
The Pew Research Center disclosed that 41.5% of unemployed employees had been out of jobs for more than six months as of February. Americans, as the statistics demonstrate, had to suffer long-term unemployment for up to nearly a month, affecting about 4.1 million Americans, or 2.6% of the country’s workforce.
Credit card borrowing plummeted in January, according to Federal Reserve data released this month, as Americans used the first two rounds of stimulus checks to pay down debt. Last year, credit card debt rose in just two months.
Nearly 30% of Americans had less emergency funds than credit card debt. The bank rate last month was still at the lowest point ever reached since two years ago. It is also found out that white Americans were less likely to have credit card debt over savings.