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.