Consumers Cut Meals, Medical Care As Financial Health Worsens
By CU Today Staff —
TROY, Mich.--The share of financially unhealthy U.S. consumers climbed to 71% in May, the highest level since January, as persistent inflation forced more households to cut both discretionary spending and basic necessities, according to the latest J.D. Power Banking and Payments Intelligence Report.
The monthly report is based on a survey of 4,000 U.S. consumers and was authored by Jennifer White, senior director of financial services intelligence at J.D. Power.
J.D. Power found that 81% of consumers changed their day-to-day spending habits to cope with rising costs. While many reduced discretionary purchases, the survey found increasingly severe measures, with 30% cutting back on groceries or skipping meals during the past month, 19% delaying bill payments and 16% postponing or forgoing medical care.
Affordability remains a growing concern. Nearly half (48%) of consumers said their monthly expenses feel less affordable than they did six months ago. Groceries were identified as the largest financial stressor by 42% of respondents, followed by gasoline costs at 38%. Another 18% said credit card or other debt payments had become their biggest financial burden, suggesting many households are relying on high-interest debt to manage everyday expenses.
The survey also found mounting anxiety about employment. Eighteen percent of consumers reported consistently high stress over job security, while another 39% said they experience occasional or moderate job-related stress. Overall, 39% said they are more worried about job security today than they were six months ago. Younger consumers and those already classified as financially vulnerable reported the highest levels of concern.
Fraud remains another significant source of financial pressure. Thirty-seven percent of consumers reported being targeted by someone impersonating a government agency or business, while 27% encountered fraudulent investment or financial product offers. Among those who experienced fraud, 23% said embarrassment prevented them from reporting the incident to their bank or law enforcement.
J.D. Power said the findings present an opportunity for financial institutions to strengthen relationships by providing budgeting tools, financial guidance and fraud education. The firm said consumers increasingly are looking for trusted advice on borrowing, saving and protecting their accounts as they navigate mounting financial pressures.
Originally reported by CU Today.