How credit unions can help members with economic affordability issues

In today’s difficult economic landscape, Americans are grappling with increasing affordability challenges. The dual pressures of inflation and high prices on essential goods and services are eroding consumer spending power and making it harder for individuals to manage their finances effectively.

Affordability is an issue across the board from cars to cheeseburgers. For instance, the president of McDonald’s recently revealed that the average price of a Big Mac meal today is up 27% from 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.

A significant amount of financial strain is felt in the automotive sector. Like many consumers, credit union members are holding onto their vehicles longer due to high vehicle costs and interest rates. However, as vehicles age, the likelihood of needing costly repairs to keep them road-ready increases. According to S&P Global Mobility, the average vehicle on the road is now a record 12.6 years old, meaning many drivers face the possibility of expensive repairs as their cars age.

This scenario underscores the critical need for credit unions to offer added services, such as vehicle protection plans, to help members navigate these affordability issues.

 

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