Debt Free Dudes - Inflation, Recession, Saving Money, Side Hustle Update

In this Debt Free Dudes podcast, Damon Day and Steve Rhode talk
about preparing for a recession, inflation, worsening economic
chances, saving money, and an update on the side hustle project.





Additional information for the facts behind this podcast is
below.





There is a 50-50 chance of a mild recession late in 2022 or 2023.





The U.S. is not in a recession yet. However, we find that most
indicators—particularly those measuring labor markets—provide
strong evidence that the U.S. economy did not fall into a
recession in the first quarter.





The U.S. economy continues to face economic risks. Labor markets
remain tight, which is fueling wage growth and in turn inflation.
This raises concerns that interest rates will have to rise to the
point of increasing unemployment to bring inflation back down.
Rising interest rates can also strengthen the dollar, making
American agricultural exports less competitive in foreign
markets.





The Conference Board said - "Notwithstanding two consecutive
quarters of negative GDP growth, we do not believe the US economy
is currently in a recession given strength across several sectors
and the extremely tight labor market."





Bank of America has just released information estimating the
unemployment rate will rise to 5% by the end of 2023 because of
increased interest rates to curb inflation.





An average score of 716 by FICO measurements means most lenders
will consider your creditworthiness "good" and are more likely to
extend lower rates.





Average nationwide credit scores bottomed out at 686 during the
housing crisis more than a decade ago, when foreclosures sharply
increased. They steadily ticked higher until the pandemic, when
government stimulus programs and a spike in household savings
helped scores jump to a historical high of 713.





British households borrowed on their credit cards last month at
the fastest annual rate in over 17 years, a potential reflection
of consumers struggling to make ends meet as the cost of living
crisis intensifies.





The inflation rate in the UK is predicted to be 22% in January,
primarily due to energy prices.





According to data from the Bank of England, the annual rate of
credit card borrowing in July was 13% higher than a year earlier,
the biggest annual increase since 2005.