Despite the U.S. not being in a recognized recession, a recent Kikoff survey reveals that 57% of Americans are experiencing financial strain.

Despite the U.S. not being in a recognized recession, a recent Kikoff survey reveals that 57% of Americans are experiencing financial strain.

In a surprising revelation, Kikoff, a credit-building platform used by over a million Americans, has released its Economic Trust Report. The report sheds light on a significant trust gap between consumers and traditional economic indicators, as well as government financial reporting.

Despite reports of stable FICO scores, consistently low unemployment rates, and lowered recession risk, many Americans still feel financially strained. According to the report, over half of Americans (57%) say they feel financially strapped for cash even though the U.S. economy is not currently in a recession.

The report is based on a nationally representative survey conducted by The Harris Poll among 2,083 U.S. adults. The survey findings validate the feeling that what looks stable on paper doesn't always match the reality of day-to-day life, as stated by Cynthia Chen, founder and CEO of Kikoff.

The survey reveals a trust gap between reported macroeconomic indicators and what Americans believe about their financial standing. People increasingly look to financial advisors, friends and family, and fintech platforms for financial information, with 43% trusting financial advisors, 41% trusting friends and family, and 32% trusting fintech platforms, all exceeding trust levels in government sources.

In contrast, less than a quarter (22%) of Americans trust the government for reliable financial insights. This eroding trust in traditional economic measures and government sources reflects a broad demand for innovative, accessible financial tools aligned with consumers’ real-world experiences.

The report also highlights personal financial stress as a significant concern. Inflation and personal debt are top concerns, with 35% citing inflation as their top financial stressor, followed by personal debt at 16%. This stress has led many Americans to make difficult decisions, with nearly a quarter (23%) having delayed major life events to protect their credit score.

Moreover, the report reveals that 20% of Americans have been denied credit or housing based on their credit score in the last year. This statistic underscores skepticism of legacy credit metrics, as 71% believe credit access shouldn't depend solely on traditional credit scores.

Interestingly, the survey findings also show that higher earners (Americans with an annual household income of $100k or more) are more likely to carry card balances past the first statement to cover unexpected expenses than lower-income peers. On the other hand, more than half of Americans (53%) say 'Buy Now Pay Later' options make them feel more in control of their finances than credit cards.

The report concludes by stating that 63% believe the U.S. economic system isn't designed to benefit people like them. This sentiment, coupled with the growing trust gap, highlights the need for more consumer-centric financial solutions that better reflect the realities of everyday Americans.

In summary, the Kikoff Economic Trust Report provides valuable insights into the disconnect between official data and lived experiences, offering a call to action for the financial industry to create more accessible, affordable, and consumer-centric financial solutions.

The Kikoff Economic Trust Report indicates that many Americans feel financially strained, despite stable FICO scores, low unemployment rates, and reduced recession risk (personal-finance). Furthermore, the survey findings reveal a trust gap between reported macroeconomic indicators and what Americans believe about their financial standing, with financial advisors, friends and family, and fintech platforms being more trusted sources compared to government sources (finance, business).

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