According to the latest data from the Federal Reserve Bank of New York, the expectation of missing minimum debt payments took a big jump for people making less than $50K.
This is also true among people with a high school degree or less.
That data seems to show the big difference between the two emerging America’s. While unemployment numbers are celebrated the more important question is what kind of jobs are occupying the time of people.
Lower paying jobs are leaving people with more concern and uncertainty for the future. People earning less than $50K a year are also a bit more pessimistic about an increase in their income in the next year.
More data from the latest findings found:
It is interesting to look at the range in earnings among all full-time workers. You will see the average income is around the $60K mark.
While it appears wages are rising from 2014 to 2018 when you factor in inflation they are actually very flat. An income of $58,000 in March 2014 adjusted for inflation would be $61,856 in July 2018. – Source
When you look at historic wage growth over time the trend becomes starker.
Strong consumer confidence in the future that is powered by easier access to credit will create more household debt that will be more difficult to repay with flat or declining wages.
Those conditions will create an advantageous environment for debt relief companies and bankruptcy attorneys.