Consumers’ financial stability deteriorated in 2024, with more households reporting difficulty paying bills and fewer prepared to withstand even short-term income losses, according to the CFPB’s latest Making Ends Meet survey.
By the numbers:
- Financial well-being score fell to 48.7 in 2024, down from 51.0 in 2023 and well below the pandemic-era peak of 52.4 in 2021.
- 22% of consumers were classified as having low or very low financial well-being, up from 16% in 2023.
- 43% of households had difficulty paying bills in 2024, up from 38% the prior year, matching 2019 levels.
- 42% of households could cover expenses for a month or less if they lost their primary income source.
- 63% of Black households and 51% of Hispanic households reported difficulty paying bills, compared to 38% of white households.
Why it matters: For professionals in collections, lending, and consumer finance, these shifts point to growing vulnerability among borrowers. Even as unemployment remained historically low in early 2024, high inflation, housing costs, resumed student loan payments, and sustained interest rates contributed to worsening financial resilience.
Key disparities:
- Income: 65% of households earning under $20,000 reported difficulty paying bills. Even among high earners ($125,000+), nearly one in five struggled at least once in the past year.
- Housing: Renters fared worse than homeowners, with 60% of renters experiencing payment difficulties versus 32% of homeowners.
- Student debt: Consumers holding current student debt were significantly more likely to report financial strain.
Between the lines: While credit card revolving debt ticked down slightly from 2023 to 2024, access to credit remained a barrier. About 39% of applicants were denied or offered less credit than requested, and 27% of consumers avoided applying altogether for fear of being turned down.
The bottom line: After several years of steady decline, consumer financial health is now back near pre-pandemic levels. For the credit and collections industry, that means more consumers will be entering repayment conversations stressed, less confident, and with fewer safety nets.
