Just last fall, Americans were feeling better about their personal finances. Now they’re starting to worry more about how they’ll pay off debts as they feel the nation’s economic recovery wobbling.
With Congress deadlocked over how to deal with the national debt, household debt is causing stress for nearly half the country, according to a new Associated Press-GfK poll. One in five adults worries about debt most or all of the time. If they bought something on a credit card in the past month, more than a third say they won’t pay it off when the bill comes.
The increased stress represents a reversal from last fall’s AP-GfK poll, which found increasing confidence about personal finances. Debt-related stress is up 17 percent from that November survey, bumping such worries back up to levels seen in 2009 and in the spring of last year.
“It’s not that our debt is huge. It’s just hard to make it, month to month,” said Theresa Telford, 45, a teacher’s aide raising four kids with her husband, a sheriff’s deputy. “It seems like everything is going up, but wages aren’t going up.”
Telford is also nervous because she has watched so many people lose their jobs in her small town of Davenport, Wash., and some of her friends still can’t find work. Although the recession officially ended in June 2009, Americans display little faith in a recovery hobbled by grinding unemployment, slow economic growth, volatile gasoline and food prices and political feuding over how to stem the skyrocketing national debt. Consumer confidence fell to a seven-month low in June in the Conference Board’s survey.