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Maxed-out credit cards together with household savings at a 20-year low are alarming portents for the looming recession, says turnaround specialist Michael Fingland.
‘Depleted savings, credit card debt leave economy on last legs’
15 September 2023
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4 minute read
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“Inflation is coming down because the household savings rate is now at such a low level,” he said on the latest Accountants Daily podcast. “Also through Covid the average credit card balance dropped by a third … it’s just tipped back up at the end of the June quarter, back up to the peak of where it was pre-Covid.”
“The economy, in terms of discretionary spending, is now exhausting itself.”
“Look at the US and Europe – when you go into a recession with a very low household savings rate the recession is worse because there’s just no buffer.”
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