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Majority of Americans made sacrifices to cover monthly bills last year

Most Americans found themselves forced to make trade-offs to make ends meet last year, with the majority reporting having to take steps at least once to cover their monthly bills in 2023. are doing.

new The study was published Thursday In a December survey, 66% of U.S. adults admitted to making sacrifices to pay for expenses in the past 12 months, according to Assurance IQ, which analyzed the various tactics they used.

A new survey shows that most Americans had to make sacrifices last year to pay their monthly expenses, and the most common tactic to cover those bills was to rely on credit cards and other debt. . (image/image)

Researchers surveyed 5,000 people, the majority of whom earned an annual income of $75,000 or more, and found that borrowing money is the most common way Americans cover living expenses when they’re low on cash. or using a credit card (41%).

Unsurprisingly, low-income households have been hardest hit, with those earning less than $75,000 more likely to borrow money for expenses, with 47% saying they needed to borrow in the last year. .

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Americans have become increasingly reliant on credit cards for their daily expenses in recent years, as high inflation has taken a toll on household budgets. Credit card debt soared to a record $1.13 trillion at the end of December, according to data from the New York Fed.

Individual using credit card reader

U.S. credit card debt reached a record high of $1.13 trillion late last year. (Robert Nickelsburg/Getty Images/Getty Images)

But consumers are increasingly taking on more debt than they can handle, and credit card delinquency rates are now above pre-pandemic levels after falling in response to coronavirus-related government subsidies. There is.

According to Assurance’s research, the second most common way Americans coped with cash-strapped situations last year was to delay paying their bills, 38% of all income groups.

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Thirty-four percent of respondents said they paid for their bills in other ways, such as tapping into their emergency savings, but many had to resort to other means.

grocery store prices

Nearly a quarter of U.S. adults said they skipped meals to cover monthly expenses in 2023. (Photo by Leonardo Muñoz/VIEWpress/Getty Images)

Almost a quarter (24%) said they skipped meals to cover living expenses, 23% sold their belongings, a further 23% said they overdrawn their bank account and 21% said they had to pay their bills. After negotiating terms, 9% said they canceled or reduced their insurance coverage.

“Low- and moderate-income households not only struggle to cover emergencies and unexpected expenses, but also struggle with recurring bills,” Alison Arzeno, CEO of Assurance IQ, told FOX Business. It turned out that we had to make compromises to maintain the status quo,” he told FOX Business.

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“Without an economic safety net, many households find themselves constantly on the brink of poverty,” Arzeno added.

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