80% of Americans facing rising cost of living

The cost of living continues to rise in the United States, with a Credit Karma study revealing that 80% of Americans have experienced a cost of living creep in recent years. This means that consumers are spending more money to afford the same goods and services as before, hindering their ability to meet financial goals. Factors contributing to this include stagnant incomes and high interest rates, leaving many feeling like their incomes will never catch up.

As a result, many Americans are struggling to save, pay down debt, or make major life purchases like buying a car or saving for retirement. More than half of those surveyed have taken on extra debt or are unable to save due to high living costs. In fact, 37% of respondents are unable to set aside any income for savings goals.

The rising cost of living is also impacting retirees and seniors, with many considering temporary work to keep up with expenses. One third of retired individuals have thought about taking on a few shifts per week, while 42% of seniors still in the workforce are considering extra shifts or side hustles. Lack of savings and increased living costs are driving these decisions, with some retirees also seeking personal fulfillment or social interactions through work.

Housing costs, in particular, are a major concern for Americans, with the cost of buying a home outpacing renting in the 50 largest metros across the country. Rental costs have fallen for seven consecutive months, while purchasing a starter home now costs buyers an extra $1,027 per month compared to last year. High mortgage interest rates are pushing the cost of buying up, making renting a more affordable option for many.

Overall, many Americans are feeling the financial strain of the cost of living creep, impacting their ability to save, pay down debt, and make major life purchases. Seeking out resources like personal loans or refinancing options can help individuals navigate these financial challenges.


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