While analysts predict we may be past the inflation peak, Americans struggle to make ends meet and are relying more and more on credit. A recent survey showed that less than 50% of Americans could afford to pay for a last-minute $1000 emergency. Inflation is hitting Americans hard, and many don’t have the financial stability and luxury to secure rainy-day funds.
For the lower-income families that cannot afford a $1,000 emergency, the rising prices of everyday necessities are acting as a further blow to their finances. Fuel prices have soared and the cost of common goods like eggs has risen by up to 60%. Electricity bills have also risen dramatically. In the past year, electricity prices have increased by 15.8%.
Simply put, the cost of living is going up and there isn’t any real promise of a change in trend. As a result, Americans are leaning more heavily on credit cards to ensure they can pay their bills. Credit card balances rose by 15% in the third quarter of 2022, the largest year-over-year increase in over 20 years. According to a new report by Bankrate, 46% of credit cardholders carry debt month to month; last year that percentage was only 39%.
To make matters worse, the average credit card rate is at an all-time high, meaning that individuals are paying far more in interest and possibly ending up in further debt.
The economic situation in Europe is reportedly just as bad, if not worse. The US is unlikely to get a boost from the global economy in the coming months. Amid such times, quick and easy access to credit can be crucial to provide some relief to the American consumer.
Current Looks To Do Its Bit To Help Through Easier Liquidity Access
A financial technology company that offers mobile banking, Current is a new type of banking alternative offering a lot of features that might be ideal for individuals who are struggling to pay the bills.
Two of the main features that have mass appeal during a period of higher inflation are faster direct deposits and better overdraft protection. Through Current, members can get direct deposits up to two days earlier.1 The mobile banking app also lets you overdraft up to $200, pending approval, with no overdraft fees. There are no minimum balance fees either.2
The app also allows for buying and selling crypto, with the cash from your crypto sales that is immediately then available to spend from your Current account. For individuals who aren’t looking to invest in a volatile market, Current offers savings pods with up to 4.00% APY.3 The company is interested in helping improve financial outcomes for everyone while making banking simple and faster.