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NEW YORK — You don’t need to be a financial genius to know that times are tough for plenty of Americans. With that in mind, a majority of people actually think the economy is doing even worse than the “experts” say it is. Three in five people believe that the U.S. is currently in a recession, even though we’re not officially in one according to the financial definition.
The survey of 2,000 Americans explored what’s driving this lack of consumer confidence in the economy. Inflation and the rising cost of living (68%) top the list of reasons why respondents believe the U.S. is in a recession, followed by friends and family members complaining about money (50%).
Conducted by Talker Research on behalf of Affirm, the research found other reasons, including noticing friends cutting back on spending (36%) and not being able to pay off credit card debt (20%).
On average, respondents who feel the U.S. is in a recession believe it started over 15 months ago, roughly in March of 2023. These Americans don’t expect it to go anywhere quickly — they believe this feeling will last until around July of 2025. As a result, some respondents are questioning their own financial futures.
Two in three Americans (68%) said the current inflation rate is negatively affecting their future plans, including their ability to save and afford upcoming purchases.
“With confidence in the U.S. economy at a low point, consumers are urgently seeking ways to feel in control of their finances,” says Vishal Kapoor, SVP of Product at Affirm, in a statement. “Amidst these levels of uncertainty and doubt, we believe that the antidote to the current ‘vibecession’ is greater choice and transparency in how people manage their finances.”
People are adjusting to the current economic environment by turning to budgeting and flexible payment options. Almost all Americans surveyed (89%) said having a predictable monthly budget is a priority when managing their finances. Transparency is also key, with six in 10 Americans (63%) preferring to see the total cost of a purchase upfront, including any interest charges.
To help them budget and remain in control, Americans are seeking more strategic ways to pay for their purchases. More than half of the poll (54%) have used or would use “buy now, pay later” options, while nearly half (45%) agree that these options make it easier to stick to a budget and manage their finances.
Additionally, almost one in two respondents (48%) said the availability of 0% APR pay-over-time offers — which allow people to spread out their purchases over the course of several months without paying any interest — affects their purchasing decisions.
“While conversations around money may contribute to the pessimistic outlook on the economy, it also means that people are discovering smarter ways to pay, including options to pay over time without any late or hidden fees,” Kapoor says.
Survey methodology
This random double-opt-in survey of 2,000 general population Americans was commissioned by Affirm between June 20 and June 24, 2024. It was conducted by market research company Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
BUY NOW, PAY LATER does Not Exist!! It REALLY means BUY NOW, FORGET LATER!!!!!!