With 2022 approaching fast, financial gurus are trying to predict what the new year will bring on the monetary front. Some focus on how this upcoming year will look for families and individuals, while others tackle larger issues, like the economy as a whole.
In this article, we’ll take some time to talk about finance predictions for 2022 that are of a more personal nature. These are some of the more pressing issues or trends with which individuals and families might find themselves grappling as the new year progresses.
Digital Finance Tools Will Become More Prevalent
Seemingly, every year brings with it more digital financial tools that the ordinary consumer can use. Even those who are not tech-savvy utilize more of them as time passes, and 2022 should continue that trend.
For instance, bank and credit card apps have existed for years, but more consumers than ever before are likely to try them in 2022 to pay bills, deposit checks, and even get loan recommendations.
Another financial tool you might choose to use in the new year is a debt reduction calculator. This tool is specifically geared toward showing you the most efficient ways to get out of debt. If you’re trying to navigate the best way to pay off your credit cards, mortgage, auto loan, or other debt, you may find one useful.
Student Loan Debt Will Not Be Forgiven
Many individuals will not be too happy to hear about this next one, but it’s true: President Biden has been making statements that strongly indicate there will be no further exemptions made for student loan payments next year.
Student loan payments have been paused for many months because of the pandemic and the economic recovery that’s gradually taking place. Covid-19 restrictions have eased almost everywhere across the country, and job growth is steadily on the rise. Because of this, the president feels that it doesn’t make sense to further extend student loan deferment.
You can argue about whether student loan deferment or forgiveness is something that makes sense, but the bottom line is that if you owe, you’re going to have to start paying again in 2022. That will make a major difference for many individuals’ finances next year.
Energy Bills Will Likely Rise
We all pay for energy, so it’s important to pay attention to news about the energy price cap and understand how it affects our personal finances. It’s intended to ensure that consumers pay a fair price for all the energy their homes consume. The reason it’s worth mentioning, though, in regards to next year, is that it’s up for review again in February, and the new rate should kick in next April.
Wholesale rises in gas prices mean that you should expect your energy bill to rise. Those with large families or properties with inefficient energy habits should expect a significant hike in their energy bills.
The Housing Market Will Continue to Cool Down
There are few more vital decisions regarding personal finance than when and if you decide to buy or sell a house. Some families and individuals chose to sell in the first half of 2021 because the housing market was very healthy. It was the definition of a “seller’s market,” meaning one that benefits home sellers instead of buyers.
If you’ve been checking sites like Redfin and Zillow lately, you will see that prices have started dropping in the latter half of 2021. Experts note that this should continue in 2022. They mention stock and crypto market uncertainty as primary reasons why home prices have either leveled off or started to fall again.
Whether you’re looking to buy or sell, this will greatly impact your personal finances in 2022.
