The unbelievable amount of consumer debt continues to act as an impediment to retirement saving, and indeed financial wellness overall, one reason why worksite wellness programs are increasingly focused on the issue.
The stress alone from high amounts of debt significantly impacts employee productivity and the employer’s bottom line.
According to a recent survey from Salary Finance, financial stress affects close to half (48%) of the U.S. workforce. Employees under financial stress are over three times more likely to suffer from anxiety and panic attacks and four times more likely to suffer from depression and suicidal thoughts.
Women particularly suffer; 56% of working women are stressed about their finances and, even more concerning to the retirement planning industry, 63% feel they do not earn enough to save.
And the problem is only getting worse.
The personal-finance website WalletHub reports that consumers racked up $35.6 billion in credit card debt during the second quarter of 2019—an all-time record for the second quarter of the year.
States with the Biggest Q2 Debt Increases States with the Smallest Q2 Debt Increases
California Delaware
Texas South Dakota
Florida North Dakota
New York Wyoming
Illinois Vermont
Among its other findings:
Record Debt
U.S. consumers added $35.6 billion in new credit card debt during the second quarter of 2019 – the largest second-quarter build-up ever. WalletHub projects that consumers will end the year with a net increase of $70 billion in credit card debt.
High Interest Rates
68% of Americans say the interest rates on their loans are too high.
Consumer Savings
Credit card users will save roughly $1.6 billion in interest if the Fed cuts its target rate again. The average household currently owes $8,602.
Mixed Consumer Sentiment
41% of people say they will feel more confident in the economy if the Fed cuts its target rate in September.