Rising Number of Americans Raiding Retirement Savings for Emergency Expenses

A record number of Americans are taking early withdrawals from their 401(k) retirement accounts due to financial hardship, with 4.8% of account holders doing so last year. Possible reasons for the increase include more automatic enrollment in retirement plans and relaxed legislation on hardship withdrawals. While this trend may indicate growing financial distress, there is also positive news of increased average account balances and higher contribution rates.

Financial Distress in Major U.S. Cities

A study by WalletHub reveals that many major U.S. cities are facing increasing financial distress, with Southern cities like Houston, Atlanta, and Jacksonville being hit the hardest. The study analyzed various financial metrics to paint a concerning picture of growing financial instability in urban areas.

Financial Distress in the United States

Millions of Americans are facing financial distress as 2024 comes to a close, with a new WalletHub survey revealing that 7.8 million Americans have delayed payments on credit accounts. The survey highlights the economic struggles in various states, with Texas, Rhode Island, Washington, and Minnesota among those experiencing significant financial distress.

Rising Credit Card Delinquencies

Credit card delinquencies are on the rise, with nearly a fifth of borrowers maxed-out, according to a report from the New York Federal Reserve. Household debt rose by $184 billion in the first quarter of 2024, reaching $17.69 trillion. Delinquency rates increased for credit card and auto loans, with younger borrowers and those in low-income areas being more affected.

Financial Distress in Major U.S. Cities

A recent analysis by WalletHub revealed that Americans in major U.S. cities are struggling with financial distress due to high unemployment and inflation. Cities like Chicago, Houston, and New York City are among the most affected, with residents facing challenges in making debt payments. The report offers advice on budgeting, debt management, and consolidation to help individuals in financial distress.