The Financial Health Network (FHN) recently released its 2022 Fin Health Spend Report, measuring what US Households spent on financial services during the COVID 19 Pandemic.
The report notes that overall spending on interest and fees across the entire gamut of financial services, totaled an estimated $305 billion in 2021, a 4% contraction from 2020. FHN attributes this contraction to stimulus payments and,
“…declines in general purpose credit card balances and the federal student loan moratorium. Toward the end of 2021, many product categories began to return to pre-pandemic trends.”
For installment loans (both bank and non-bank), the top line results indicated that household spending on fees and interest remained roughly flat from 2020.
An examination of payday loans saw significant usage drops that were closely aligned with the timing of the three stimulus payments. The survey also showed that Buy Now Pay Later (BNPL) credit was accessed disproportionately by “…customers who are struggling in several areas of their financial lives….”
Other categories measured included bank account overdrafts, student loans, credit cards, auto loans and insurance.
The entire report can be read here: FinHealth Spend Report
The Financial Health Network provides research, advisory services, measurement tools, and opportunities for cross-sector collaboration on the subject of financial health. It works to advance awareness, understanding and proven best practices in support of improved financial health for all. For more on the Financial Health Network, go to www.finhealthnetwork.org
SOURCE: Financial Health Network