With COVID-19 throwing financial markets into disarray, 76% of Americans are worried that the coronavirus will trigger an economic recession. A recent survey (opens in new tab) conducted by Tally has found that financial anxiety is alarmingly high in the wake of recent stock market crashes, with 36% planning on delaying major, or non-essential, purchases.
The coronavirus crisis is causing 'unprecedented volatility (opens in new tab)' for stock markets, with the Dow Jones industrial average dropping (opens in new tab) almost 3,000 points on Monday - its worst day since 1987.
For many American families, fear of economic expense is stopping them seeking testing and treatment for COVID-19, with recent research finding that 32% of U.S. families (opens in new tab) have avoided going to the doctor in the last year due to cost. This number remains high, even for those using the best health insurance companies (opens in new tab) to cover costs.
According to the survey, 'Millennials, many of whom may be still recovering from the previous recession, are the most likely to plan to take certain financial actions (or have already done so) to preserve cash.'
'This includes delaying major or non-essential purchases (44%), making only the minimum payments on credit card bills and other debt (23%) and relying more on credit cards for daily expenses (15%).'
Managing financial anxiety
With increased social distancing being enforced across the U.S., many are turning to personal loans online (opens in new tab) for financial support. It's also a good idea to use the best debt consolidation companies (opens in new tab) to make repayments manageable and automated.
Although we won't know if we're in a recession for some time, some economists (opens in new tab) like David Leonhardt are deeming the current economic climate "more severe than the Great Recession". With many preparing for the worst by avoiding non-essential expenses, Amazon is following suit (opens in new tab) by suspending shipments of non-essential items to warehouses. It seems that the focus, for now, is just getting by.