Americans Lose Confidence Over Debts [AUDIO]
With many Americans refinancing and consolidating their debt, the past year has seen people take a positive attitude toward financial security. However, April showed Americans feeling less comfortable about their debt compared to the same time last year — only the second time that’s happened in the last seven months.
Bankrate.com reported its Financial Security Index slipped from 102.2 in March to 100.5 in April, still an improvement over last year, but a decrease nonetheless.
Bankrate chief financial officer Gregory McBride said he’s not quite sure what caused confidence to fall for the month of April, but he said it was most evident in households with an annual income between $50,000 and $74,999, as well as those with incomes under $30,000.
McBride said stagnant wages could be the root of it, especially as the cost of living continues to increase.
“People continue to feel squeezed,” he said. “It can undermine how they feel about debt, just the same as it puts the crimp on their ability to ramp up spending.”
As confidence over debt is challenged, McBride sees it affecting other aspects of confidence, including savings and job security.
The survey was conducted by Princeton Survey Research Associates International.