High Prices and Debt Weigh on Consumers as Savings Dwindle
• Housing costs are the highest in 40 years, with buying a home now taking 41% of the median household income
• Americans are carrying over $4.8 trillion in non-housing debt, with credit card balances growing the fastest at 34% over the past 2 years
• High prices have led to more credit card debt and more consumers falling behind on payments, with seriously delinquent card debt up 90%
• Households accumulated $2.1 trillion in excess pandemic savings, but have already spent $1.9 trillion of it
• Experts predict consumers will have to pull back spending by the 2023 holidays as debt becomes unsustainable and savings run out