While overall financial well-being remained unchanged between 2022 and 2023, an increasing number of families struggle to pay their bills, according to recent findings.
12/04/2023 1:05 P.M.
2 minute read
In the aftermath of the pandemic, financial resilience seemed to be on the horizon for many in 2020 and 2021, thanks to relief measures. However, the 2023 Making Ends Meet survey from the Consumer Financial Protection Bureau’s Office of Research finds that financial wellbeing remains relatively unchanged between 2022 and 2023, revealing a concerning deterioration in financial stability and health across various measures compared to the previous years.
Here are some key findings from this year’s survey:
- More families had difficulty paying their bills in 2023, but average financial well-being was unchanged. The share of families with difficulties paying bills or expenses increased from 35.7% in 2022 to 37.8% in 2023, but is still below the 40.4% level in 2019.
- Unemployment remained low in November 2023, but many consumers said they are not prepared financially for a period of unemployment. If they lost their main source of income, 39.7% of households could cover expenses for a month or less by using all sources, including savings, selling assets, borrowing, or seeking help from friends or family.
- The share of households whose income varies somewhat or a lot each month decreased from 33.7% in 2022 to 30.6% in 2023.
- In 2023, 41.5% of consumers applied for credit. Of the consumers who applied for credit, 36.6% were turned down or did not get as much credit as they applied for. An additional 23.9% decided not to apply because they worried they would be turned down.
- The share of consumers with $500 or less in a checking or savings account declined from 30% in 2022 to 29.1% in 2023.
- For the more than 80% of households with a credit card, most available liquidity is from available credit. Available credit card liquidity increased or held steady for consumers across the checking and savings account distribution from January 2022 to January 2023 and increased again to July 2023.
- Black and Hispanic consumers had lower financial well-being in 2023, are more likely to have had difficulty paying bills or expenses, and have fewer financial resources to cover lost income. Renters and consumers with student loans were also notably more vulnerable to income disruptions even before federal student loan payments resumed in October 2023.
“Overall, this report points to increasing strains on Americans’ finances,” according to report researchers. “While pandemic relief provided a brief reprieve, many consumers were showing signs of financial stress in early 2023.”
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