A study finds more are worried now than this same time last year.
With inflation at a record high, most Americans fear the country will be in a recession by the end of 2022.
Three out of five survey respondents told life insurance company Allianz they’re worried a recession will hit soon. That’s up nearly 20 percent from last year when asked the same question.
“Rising costs on necessities like food and gas are hitting Americans’ bank accounts,” said Kelly LaVigne, an Allianz Life VP. “Some might have dipped into their savings to cover those initial increases in the short term. But, as this drags on, the worry about how increasing inflation will affect purchasing power and saving in the long term is increasing.”
Pollsters from CNBC and Acorns asked a similar question to 4,000 Americans. More than 8 in 10 are convinced the next recession will hit the U.S. by the end of the calendar year.
Times are already tough
Last month, Debt.com reported “Inflation is Making Americans Sick.”
Multiple studies show that many Americans are struggling to keep up with the rising costs of living. The stress from their financial woes was taking its toll on their mental and physical health.
One Harris Poll of 600 U.S. workers revealed that “81% of employees said that allocating extra funds to transportation is affecting their ability to cover other expenses.”
- 49% said they have difficulty paying for groceries
- 40% struggle with utility bills
- 34% have a hard time covering rent and mortgage payments
More than 3 in 4 felt anxiety, fatigue, muscle pain, and appetite changes.
The poor suffer from poor mental health
Every month, a human resource and technology company called LifeWorks quizzes thousands of Americans on their mental well-being. They call it the Mental Health Index – and June’s headline was “Inflation causing poorer mental health among Americans.”
The index found that 1 in 5 Americans are struggling to keep a roof over their head and feed their families. Fifteen percent aren’t confident they’ll have a home by next June.
“After years of dealing with pandemic-related anxieties, more Americans are now dealing with a new looming fear of not being able to put food on their tables or have house security due to the sharp inflation increase,” says Paula Allen, a LifeWorks VP. “It’s important to recognize that financial strain is destabilizing and can impact mental health.”
How to ease the stress
There is far less to fear when you have a plan. Debt.com has an extensive guide on how to recession-proof your finances.
The first step is to minimize your debt level. As the Fed continues to raise interest rates to curb inflation, the cost to borrow is only going to increase. The best thing to do is to start eliminating high-interest debt like credit cards now. Here are a few debt relief options that can help:
Find out: How to Deal with Financial Stress
Published by Debt.com, LLC