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New TransUnion research reported that more than half of consumers said their household has been financially impacted by COVID-19 and that they will not be able to pay their bills and loans in less than six weeks.
What's more, consumers with a member in their household who works in restaurants, financial services, manufacturing or retail are struggling the most financially.
According to TransUnion's online survey of more than 2,000 adults released last week, 69% of consumers indicated there is someone in their household who works in the financial services industry and was impacted by a job loss, reduction in work hours or loss of freelance work.
Seventy-seven percent of consumers said there is someone in their household who works in the restaurant/food services industry who has been financially affected by a job loss or reduction in hours because of the coronavirus crisis; and in manufacturing and retail, 68% of consumers said someone in their household who works in those industries has been impacted by COVID-19.
Fifty-one percent of consumers said they have cut back on all discretionary spending, while 23% have reduced the amount of money they are socking away in their retirement and savings funds. Nineteen percent said they are delaying an auto purchase and 12% said they are placing on hold buying a home, according to the TransUnion survey.
About 19% of consumers have used their retirement savings to pay bills, while 18% said they have increased their usage of available credit.
More than 40% of consumers are concerned about their ability to pay credit cards while 26% said car payments, mortgage (23%), personal loan (20%) and student loan (15%).
Though more than 60% of consumers who identified as Gen X, mMillennials and Gen Z have contacted companies to discuss payment options, only 30% of baby boomers have done so.
Of the survey respondents with accommodations on loans, 32% said they would prefer a repayment plan to catch up gradually while making regular payments, 21% would prefer an extension on the loan accommodation for a few months and 18% would prefer to pay off all postponed payments with a lump sum.
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