Inflation is forcing 38% of US adults to delay major milestones.
ICYMI: Inflation Is Forcing 38% of US Adults to Delay Major Milestones |
In case you missed it, inflation isn't just making most things more expensive: it's also forcing 38% of U.S. adults to reconsider major milestones, a new survey from The Balance found. More than half of the adults The Balance surveyed said they were considering buying a car, getting married, purchasing a home, having a child, and other major milestones in the next 12 months. But inflation has forced them to reconsider those choices, with buying a car topping the list as the #1 milestone to be delayed. Among those who were thinking of buying a car over the next year, 76% are now planning to delay or reconsider. A car wasn't the only big purchase put on the chopping block. The next most common major purchase to be delayed among survey respondents was buying a house, with 11% putting it off in the next year because of inflation. Of those who were thinking of buying a home in the next year, 78% are now planning to delay or reconsider altogether. While inflation in July has shown some signs of cooling off, it's too soon to say if that downward trend will continue. As the Federal Reserve continues its fight against inflation by hiking interest rates, borrowing money becomes more expensive. That's because the federal funds rate affects the interest rates of many different types of loans, including car loans and, indirectly, mortgages. -Kristin |
|
|
A debt-to-income-ratio is a measurement of how much of your monthly earnings goes toward payments, such as student loans, credit card bills, or a car payment. To calculate your current debt-to-income ratio, add all of your monthly debt payments, then divide your monthly debt payments by your monthly gross income. Debt-to-income ratio is usually quoted as a percentage. For example, you might have a debt-to-income ratio of 25%, meaning one-quarter of your monthly income goes toward debt repayment. Along with your credit scores, your debt-to-income ratio is an important factor for getting approved for a loan for big purchases such as a home or car, as lenders use it to evaluate your ability to repay loans.
If you have a low ratio, you may be able to take on additional payments. If you have a higher ratio that prevents you from getting approved for a loan, it might be best to start paying down some of your existing debt, adding a co-signer, putting down more money upfront so your monthly payments are lower, or delay borrowing.
|
|
|
Bathroom remodels can be a big undertaking, but the results are often worth the money. Here's why they could add value to your home. Learn More > |
|
|
Americans who are able to are skipping their work commute and choosing to work from home because of higher gas prices. In a survey conducted by The Balance between the end of June and early July, 22% say their job allows them to work remotely—among them, 59% say they are working from home more because of gas prices. However, gas prices have cooled significantly since, dropping 7.7% in July according to the latest inflation figures from the Bureau of Labor Statistics' Consumer Price Index. |
|
|
On Monday, August 15 at 2 p.m. EST, join us on IG live for a discussion with The Balance Editor-in-Chief Kristin Myers and Nikki Merkerson, Founder of PairGap and Urban Leisure, on buying a home as a single woman. Follow us on Instagram to get updates on The Balance's live events this month! |
|
|
Email sent to: spiritofpray.satu@blogger.com
You are receiving this newsletter because you subscribed to The Balance Today newsletter.
If you wish to unsubscribe, please click here.
Dotdash Meredith 225 Liberty St, 4th Fl. New York, NY 10281
© 2022, Dotdash - All rights reserved Privacy Policy
|
|
|
|
0 Response to "In Case You Missed It"
Post a Comment