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Consumer Debt Score Stabilizes

NFCC gauge shows decline in people’s financial distress.

Published

11 months ago

November 23, 2023

INSTORE Staff

Prices at the gas pump are among the factors impacting consumers’ budgets. PHOTOGRAPHY: Ladanifer/iStock.com

As prime holiday shopping season begins, there is a glimmer of hope for millions of Americans who have been struggling with higher prices and debt obligations. The latest NFCC Consumer Debt Score, which gauges how comfortable average Americans are with their level of unsecured debt, saw a moderate decline to 64 during the third quarter of 2023, a sign that more Americans have been able to create a budget and stick to it.

“For only the second time since pandemic-related stimulus payments allowed many families to pay down existing debt, we saw a small but notable decline in consumer financial distress,” said NFCC CEO Mike Croxson.

The NFCC Consumer Debt Score has a baseline of 50, indicating a medium level of distress among consumers about their ability to repay their debts, particularly credit card debt. Even with a decrease from a score of 66 during the second quarter of 2023, the NFCC Consumer Debt Score has risen by 67 percent since its low in the second quarter of 2021 as many families returned to pre-pandemic routines of shopping, dining out and travel, coupled with record-setting inflation on everyday items such as groceries and gas. This substantial increase highlights a noteworthy change in consumer financial distress over a relatively short period of time.

Click here for more from the gauge.

You Wouldn’t Cut Your Own Hair. Why Run Your Own Retirement Sale?

After being in business for over a quarter of a century, Wayne Reid, owner of Wayne Jewelers in Wayne, Pennsylvania, decided it was time for a little “me time.” He says, “I’ve reached a point in my life where it’s time to slow down, enjoy a lot of things outside of the jewelry industry. It just seemed to be the right time.” He chose Wilkerson to handle his retirement sale because of their reputation and results. With financial goals exceeded, Reid says he made the right choice selecting Wilkerson to handle the sale. “They made every effort to push our jewelry to the forefront of the showcases,” he says, lauding Wilkerson for their finesse and expertise. Would he recommend them to other jewelers who want to make room for new merchandise, expand their business or like him, decide to call it a day? Absolutely he says, equating trying to do this kind of sale with cutting your own hair. “The results are going to happen but not as well as if you have a professional like Wilkerson do the job for you.”