"It's the economy, stupid" remains a relevant phrase today, as a new poll suggests that financial issues significantly influenced the recent election. With household debt becoming a necessity for many and a burden for even more, researchers have found that living in debt is affecting everything from personal health to voting decisions.
WalletHub's survey, conducted with a nationally representative sample of Americans, revealed that nearly 58% of respondents are currently struggling with debt. Half of them are concerned about the impact of their growing debt on their children.
Health, Stress, and Debt
- 48% of Americans in the poll say their debt and financial stress are affecting their well-being.
- Nearly two in five people expect their household debt to increase over the next year, indicating potential growth in financial anxiety.
The Credit Card Crunch
- Credit card debt is the most common type of debt troubling American households, with 51% of respondents citing it as their primary financial struggle.
- Mortgage debt (18%) and student loans (15%) follow credit card debt as significant sources of financial burden.
Did Debt Decide the 2024 Election?
- Nearly three in five Americans say their personal debt issues influenced their vote in the November election, highlighting the role of financial security in shaping political views.
- 50% of respondents are worried about how their debt might affect their children, showing long-term concerns that may influence family planning and financial choices.
Forecast for the Future
- 37% of Americans expect their household debt to increase within the next year, while 39% anticipate a decrease.
- 58% feel their household finances are "recession-proof," indicating a mix of optimism and caution.
- Over half (51%) see their debt as a potential threat to their retirement savings, underscoring the long-term impact of debt on future plans.
Is There Light at the End of the Tunnel?
- Despite widespread concerns, 79% of respondents feel their household finances are "under control" at present, which could reflect effective personal budgeting or confidence in managing debt responsibly.
- However, 42% report having more debt than they did 12 months ago, suggesting that while some Americans are coping well, others continue to face significant challenges with debt.
Survey Methodology
- This WalletHub survey reflects the results of a nationally representative online survey of nearly 220 respondents.
- Researchers normalized the data by age, gender, and income to ensure the sample reflected U.S. demographics accurately.
By the numbers, inflation in America continues in the same direction: Easing largely — but still sticky.
Data out on Wednesday showed consumer prices last month increased 2.6% from a year ago. That was slightly higher than the 2.4% annual increase seen in September — but overall, inflation has still eased substantially from its peak in 2022.
That should be good news, but it has been of little comfort to many Americans.
That's because prices still remain substantially higher than they did before the pandemic — and that has left many voters frustrated, as the election this year made clear.
Here's what to know about the state of inflation in America.
Inflation is easing but there are still pain points
Although inflation has eased, there are still things that hit the pocketbooks of many Americans.
Housing is a big one. The index for housing costs — which broadly measures the rental market — continues to rise, as do some other essentials like medical care.
But a few items saw price decreases, including gasoline prices.
Prices may no longer be rising as much anymore — but they are still very high after months of increases.
Those who said inflation was the most important factor in the election this year were almost twice as likely to support Donald J. Trump than Vice President Kamala Harris, according to a survey by the Associated Press.
Counties with the most difficult housing markets showed the greatest median shifts toward Trump, according to an NBC News analysis.
High prices are pinching Americans
But it wasn't just Trump voters who were unhappy with high prices.
Alex Spangler, 38, in Westminster, Colo., a suburb of Denver, voted for Harris though she's not impressed by either party.
Spangler says she and her partner are struggling to save money because of how much they are paying for groceries and other necessities, which is leaving them with little cushion for emergencies.
Spangler says even simple trips to the supermarket regularly cost her and her partner $20 to $50.
"We both make decent wages, but with the way that inflation has increased, it's like our dollar just doesn't go as far," says Spangler, who helps manage device launches for Boost Mobile.
Spangler says she and her partner don't really buy "anything extravagant" or go out much because of how much they spend on groceries.
"Even though inflation has leveled out, the cost of goods rose and they've stayed there. So it still impacts our paychecks regularly," she says.
And that has left Spangler disillusioned about the future.
"It's just honestly put a big damper on our prospects for the years to come," she says.
On the campaign trail, Trump has promised to slash inflation and bring down prices.
But many economists expect that inflation could go higher if Trump follows through on his economic policies.
Trump has promised widespread tariffs which could lead to higher prices for consumers. Meanwhile, his promises to cut taxes and deport undocumented immigrants could also help ignite more inflation.
"I think a lot of the policy proposals that have been touted, in general, point to a more inflationary direction," says Sarah House, a senior economist with Wells Fargo.
Higher inflation could leave the Federal Reserve in a tough place.
The Fed has started to cut interest rates since September in response to easing inflation — and economists still expect policymakers to continue cutting at its policy meeting next month.
But the Fed may have to pause or reduce how much it cuts rates starting next year if Trump carries out his economic proposals and sparks more inflation.
The leadership of the Fed is also in question. The term of the current Fed Chair Jerome Powell ends in 2026, and Trump could choose to replace him, given their antagonistic relationship during the president-elect's first term.