A bright spot in the economy is at risk as 30 million Americans face student loan payments for the first time since the pandemic
and stalled debt-ceiling talks have spooked investors and heightened recession fears, but a source ofAmericans have shown surprising ability to sidestep gloomy economic prognostications over the last year, but that could all foldThe strength we've seen in spending — cash going toward travel and restaurants have climbed in recent months — mayThat means about 17% of adult Americans. That's the second-largest consumer proportion of loans outside of mortgages.
The government had paused payments due to the pandemic, but they could start again as soon as September, and take shape at aboutThat additional load could weigh on consumer spending, and eventually increase delinquencies on other payments like credit cards and personal loans, strategists said. Strategists continued:
"Adding a monthly obligation for ~30 million people has the potential to cause volatility in consumer finances that are already pressured by inflation and could also be facing higher unemployment levels. This will likely pressure spending as borrowers manage their finances and could also lend to an increase in delinquencies."are about to go up as consumers divert cash back to student loan payments.
Do you have student loans? How do those impact your discretionary spending? Tweet me or email me to let me know.Artur Widak/NurPhoto via Getty Imagesas investors await an update on the progress of talks between congressional leaders and President Joe Biden on the US debt ceiling.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
1.63 million 'excess deaths' among Black Americans compared to white Americans in last 20 years: StudyNEW YORK — A new study from the medical journal JAMA Network estimates there were 1.63 million excess deaths among Black Americans between 1999 and 2020. 'Excess deaths' is an estimate of how many people died above and beyond what is expected, according to the study.
Read more »
Americans are setting vacation records and splurging at bars, restaurants and hotels | CNN BusinessLeisure and hospitality businesses are hiring, offering enhanced benefits and trying to meet persistently robust demand. This expected strength in leisure spending means big business for an industry that was on its knees just three years ago.
Read more »
Millennial negotiated pay, $10K in extra benefits to relocate for jobA millennial shares how she negotiated a higher salary and $10,000 in extra relocation benefits when she landed a new job: 'If you don't speak up for what you want, you will get the bare minimum.'
Read more »
Elizabeth Holmes and Sunny Balwani's relationship timelineTheranos founder Elizabeth Holmes is awaiting her 11-year prison sentence. Here's a timeline of her relationship with her co-defendent and ex-boyfriend, Sunny Balwani.
Read more »
Surge in corporate bankruptcies just the start for debt-loaded firmsInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »