Meanwhile, the average total monthly payment per month is under $1,000 a month in only a handful of midwestern states and Mississippi.

Student Loans, Rent and Other Monthly Payments Are Also Squeezing Consumers

Of course, there’s additional financial pressure from monthly obligations such as student loans, rent and utilities, particularly for younger consumers. Zooming out, this growing stack of monthly payments may be beginning to slow consumer spending. Absent any increase in income, that means that U.S. consumers will have less for future consumer spending. 

Nor will interest rate cuts, which are still expected sometime in 2024, immediately result in immediate relief for most consumers, although lower rates may help consumers with good credit to better negotiate lower rates on financing or refinancing loans. 

Fortunately, for many, the labor market is still working to their advantage. Employment levels continue to increase, as well as average wage levels. Just as fewer vehicles and homes for sale meant rising prices in those markets, fewer workers in the coming years may mean higher wages as the market finds a new equilibrium. 

Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.

This story was produced by Experian and reviewed and distributed by Stacker Media.