Though there are signs of recovery on Wall Street, recent research from Financial Finesse indicates that consumers are still financially stressed—and that economic conditions may actually be getting worse for many Americans.
The report provides primary data on consumer financial issues by tracking calls into the company’s financial helpline as well as online usage of its financial planning platform.
Here are some notable points:
- 98 percent of employees reported feeling stressed about their finances
- 35 percent indicated their stress level is either high or overwhelming
- In the second quarter, 82 percent of calls made to the helpline were about short-term financial issues—mostly serious debt and money-management problems—while only 18 percent of calls were focused on long-term financial planning.
- From the first quarter to the second quarter, calls about retirement-plan loans and hardship withdrawals nearly doubled
Liz Davidson, founder and CEO of Financial Finesse, says that, based on these findings, it is clear that, “consumer confidence is still low” and that people aren’t “really buying that the worst of this recession is behind us.”
However, she says there is a positive side to the story, in that consumers’ skepticism toward recovery has encouraged Americans to be more financially responsible and to take control of their saving and spending habits.
Source:
Financial Finesse: A New Era Of Financial Responsibility; New Research Shows Recession Is Changing The Financial Landscape
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