inflationWorking problems and high interest rates are squeezing many American consumers.
Now, even high -income people with income of $ 150,000 or more have shown signs of pressure. These borrowers are becoming more and more difficult for credit cards, car loans and mortgageEssence
According to a new report from the National Credit Company VantageScore, the crime rate between high -income people was nearly five years, and it increased by 130 % from January 2023 to December 2024.
Vantagescore CEO Silvio Tavares said in an interview with CNBC: “We have seen a significant increase in service costs, such as house insurance and car insurance, which is more difficult than most people. This is why the crime rate is promoted.”
High income people are cautious about credit
Tavares said that in most cases, consumers are cautious about credit. Although credit card balance rose 2.9 % in December 2024, this speed was consistent with inflation. Consumers have some running rooms before they reach the limit.
Overall, consumer credit utilization rates have decreased by one percentage point to 51.6 %, which is the second high rate in 2024.
“They actually have a lot of credit.” “They just choose not to use it.” “They just choose not to use it.”
Tavares said that this is a positive signal that consumers are exercising their self -control, and consumers are more “cautious” with the beginning of the year. Although the stock market was very strong last year, concerns about inflation and unexpected prices still exist.
What to pay attention to
The challenges facing consumers, including the planning of the Ministry of Education from this month, began to pay for the state credit reporting agency to pay to the state credit reporting agency.
Tavares said that borrowers who do not pay these loans can expect their credit scores to fall by 80 points. The average VantageScore in December was 702. VantagesCores does not wait 300 to 850, and the score is less than 660 secondary times.
After the California wildfire arrives, there is a cost of insurance loss Estimated $ 40 billionTavares said that the increase in insurance rates may further emphasize borrowers.
Tavarez said: “The cost of damage will spread to all consumers of those insurance companies across the country.” “This will increase the insurance rate, which will further promote illegal illegal we have seen in high -income categories in the past year in the past year. Behavior.”
High income people intend to slow the expenditure
Other recent data show that high -income consumers face financial pressure.
Bain’s consumer health index, A data series focusing on high -income people shows that the intention of their expenses has decreased by 10.8 %, which is due to the uncertainty of the future performance of the stock market in the past two years.
“We see those who have recently issued a worry -free signal for those who have recently revenue in income; given their discretion in the United States, we have recently issued a worry -free share. Their expenses are insufficient. This makes us feel worried “, global management consulting company.
The Bain Index also declined during last year, although it did not return to the previous level. Because high -income people represent most weaknesses at the discretion, any weaknesses may have a huge impact on the economy.
Signs of power
The wages continue to grow, and the unemployment rate is still about 4 %, which is the reason for the continuous growth of consumer expenditure. Although the growth rate slows down, the direction is still positive. PNC financial services are expected to spend about 2 %.
“I think this is a good, solid step, said,” said PNC’s chief economist, said, “I think this is a good, solid pace, and a good economic and good labor market, and it can be sustainable for a long time.”
