Part 5/8:
The Vulnerability of Lower-Income Americans
Amidst the rising credit card debt and spending binges, lower-income Americans are reportedly bearing the brunt of these financial pressures. Admeter notes that slower wage growth, fewer working hours, and persistent inflation are particularly hard on this demographic. Increasing debt costs, coupled with stagnant or declining incomes, create severe financial strain, leading many to fall into delinquency on their loans.
The risks are compounded by indications that banks are tightening their lending standards, leading to more frequent denials for additional credit. As consumer sentiment deteriorates, banks may become even less willing to extend credit, further constricting the financial options available to already stressed households.