Consumers' debt dilemma: Here's what to know

Debt Struggles Across Income Levels - Data indicates that many Americans struggle with basic financial management, despite perceiving themselves as knowledgeable [2] - Debt issues affect Americans across all income levels, not just lower-income households [3] - A key factor is when interest expenses exceed affordability, leading to financial distress [3] Deteriorating Consumer Debt Situation - The percentage of people making credit card payments less than the minimum required increased to 13% in August, up from 8% in the spring [4] - The share of borrowers consolidating credit card debt into personal loans doubled to 8% [5] - Late payments are rising, including those more than 90 days late, indicating financial strain [5] Factors Contributing to Debt Problems - Worsening employment conditions, sustained high inflation, and high interest rates are key drivers of increasing debt struggles [5] - Even creditworthy borrowers are showing signs of financial strain due to across-the-board increases in late payments [6] Lending Market Response - Lenders are tightening lending standards for car loans, home loans, and other consumer loans [7] - Consumer demand for loans is decreasing [7] - A significant portion of consumers are paying as much as $1,000 per month for car loans [8] Lack of Budgeting - 62% of people making $100,000 or more do not have a budget [9] - 20% of people making $100,000 or more are worried about being able to make their payments [9] - Negative credit card behaviors are consistent across income levels [10]