WASHINGTON: US consumers are increasingly focused on paying down debt, according to a survey from the Federal Reserve Bank of New York.

       Asked what they would do if they got an unexpected 10% increase in income, 38.4% of households said they would use the extra money toward debt payments. That’s the highest reading since August 2016.

       Meanwhile the share of respondents who would spend or donate the windfall dropped to the lowest on record since the series began in August 2015.

       The results signal increasing financial pressures for US households, who have been relying more and more on credit cards in recent months.

       Asked what they would do if faced with an unexpected loss of income, a record share of respondents said they would have to increase borrowing.

       Consumers are also less likely to make a large purchase over the next four months.

       The share declined for home appliances, electronics, furniture, home repairs, vehicles, and vacations – although it did increase for buying a home. — Bloomberg

       StarPicks

       Maximise your EPF savings with voluntary contributions