The Consumer Financial Protection Bureau’s new report on peoples’ financial health shows that 36% of households making $50-80k couldn’t pay bills more than one month if they lost their primary source of income.
This is notable ahead of a possible recession in 2023. The Fed’s inflation battle may result in unemployment rising from record low 3.7% levels today.
The Fed has indicated comfort with unemployment rising to 4.5% to squash inflation and that feels like a fair trade. But if unemployment spiked, this “one month of runway” for paying bills would become an issue.
The report goes much deeper into other bills people have, and how aware people are of their options to get help during times of hardship.
The main takeaway: there are ways to get help, and the CFPB is here to help with that.
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Here’s the CFPB’s new Making Ends Meet research report with lots of key stats on household financial health ahead of 2023.
Check It Out: