American households turn to credit and buy now, pay later as gas prices rise
Updated
Updated · Fox Business · May 8
American households turn to credit and buy now, pay later as gas prices rise
1 articles · Updated · Fox Business · May 8
Bank of America Institute said lower-income households spent 4.2% of income on gas in March, while AAA's national average topped $4.50 a gallon after oil rose above $100.
About 10% of lower-income consumers spent more than 10% of household income on gas, versus 6% of higher-income households, while wage growth was just 1% for lower-income earners.
The report said households still have credit-card capacity and deposits about 10% above pre-pandemic levels, helped by larger tax refunds, though buy now, pay later offers only short-term relief.
With household savings up 10% post-pandemic, why has American consumer sentiment plunged to a 74-year low?
Beyond credit and savings, what can fix the record gap between wages and the rising cost of American life?
As a historic oil crisis unfolds, will soaring gas prices accelerate or derail America's transition to electric vehicles?