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80% of Americans are dealing with a cost of living creep

Many Americans are struggling to save money or pay off debt due to the rising cost of living. (iStock)

The cost of living is rising and most Americans are feeling the pressure. A staggering 80% of Americans have experienced an increase in the cost of living in the past few years. Credit Karma Survey found.

Rising costs of living mean consumers are spending more money to buy the same amount of goods and services as before, and about 66% of those surveyed said the rising cost of living is preventing them from reaching their financial goals.

Lack of income growth and high interest rates are the two major factors contributing to the rise in the cost of living. Around 60% of people believe that their income will never catch up with the current cost of living. Even those whose income has increased cannot keep up with the increasing cost of living.

Paying off debt, saving for retirement, buying a new car, and more have all been put on hold as many Americans struggle to keep up with everyday expenses. More than half of those surveyed have taken on extra debt or been unable to save because they have to pay high bills and expenses.

Savings is commonly put on the back burner, with 37% of respondents not setting aside any income for savings goals. Instead, income goes towards basic living expenses, which remain a challenge for many Americans.

Struggling with debt and the high cost of living? A personal loan can help you pay off high-interest debt and create more room in your budget. Use an online marketplace like Credible to find the best interest rates and lenders for your needs.

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Many retirees are considering temporary work to cover living expenses.

Rising living costs have retirees and seniors considering returning to work temporarily, with a third of retirees considering working a few shifts a week. Indeed Flex Survey Indicated.

About 42% of seniors who have never quit their jobs would also consider taking on extra shifts at work or a side job.

Nearly a fifth of those surveyed cited a lack of savings as their reason for temporarily returning to work, and more than 71% cited rising living costs as the reason.

Beyond financial reasons, some retirees plan to return to work for personal fulfillment and greater social interaction.

If you’re interested in consolidating or refinancing your debt, it helps to work with an experienced loan officer. Visit Credible to see all of your loan consolidation lender and rate options.

Americans’ retirement goals rise 15% but savings fall: Survey

The cost of buying a home has led many people to choose to rent instead of buy.

Housing is one of the most expensive expenses Americans face, and while the costs of buying and renting a home have increased significantly since pre-pandemic, the costs of buying now exceed the costs of renting in the nation’s 50 largest metropolitan areas. Found Realtor.com.

“Across all major housing markets, renting is more affordable than buying your first home,” says Jiayi Xu, an economist at Realtor.com. “That’s important for first-time buyers wondering, ‘Should I buy now or later?'” It gives them a clearer perspective on their financial costs.

Rent rates in these metros had fallen for the seventh straight month as of February, while the cost of buying a first home is up 60.1% from last year, costing buyers an extra $1,027 per month.

Renting is now significantly cheaper than buying, as mortgage interest rates have risen to the 7% range. These interest rates are driving up the cost of buying, which, combined with already high home prices, is creating a buying nightmare for prospective homebuyers.

When you’re ready to compare mortgage offers, consider using Credible, which makes it easy to compare interest rates from multiple lenders in just a few minutes.

New construction remains popular, as most Americans believe now is a bad time to buy an existing home.

Do you have a finance-related question but don’t know who to ask? Email a trusted money expert email address: Your question might be answered in Credible’s Money Expert column.

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