Dealing with a “Vibecession”

According to new survey from payment network Affirm, a majority (three in five) of Americans say the U.S. is currently in a recession, even though a recession has not been officially announced. This pessimistic outlook about the economy without an official recession has been called “vibecession.”

In a questionnaire completed by 2000 Americans, (conducted by Talker Research on behalf of Affirm) inflation and the rising cost of living (68%) is the most cited reason why respondents believe the U.S. is in a recession. The second most cited reason is hearing complaints by friends and family members about money (50%). Other reasons include: seeing friends cut back on spending money (36%) and credit card debt (20%).

The release also notes that 89% of those surveyed said a priority in managing their finances is having a predictable monthly budget. In addition, 54% said they have used, or would use, “buy now, pay later” options for purchases. However, only 45% said these kinds of payment options make it easier to stick to their budgets.

“With confidence in the U.S. economy at a low point, consumers are urgently seeking ways to feel in control of their finances,” said Vishal Kapoor, SVP of Product at Affirm. “Amidst these levels of uncertainty and doubt, we believe that the antidote to the current ‘vibecession’ is greater choice and transparency in how people manage their finances.”