I own a hair salon. Typically, November is my busiest season. It has been SO quiet. A lot of my colleagues are also saying the same thing and have had to close up shop because of it - or get a second job.
People keep saying it will get better and the economy will bounce back but I don’t know. I am so close from just throwing in the towel, closing up shop and getting a corporate gig.
I’m afraid what happened is that there was such a boom in the last three years that people have worked themselves into a lot of debt. Between new houses, cars, etc. they have basically tied up a significant amount of their income in debt. Now they have to cut out the extra things
The amount of people that didn’t understand what an adjustable interest rate are is higher than you think.
Also, I suspect that many people failed to realize how much higher interest rates would affect them, in terms of expenses edging up due to initial costs and the impact of compounding. We tend to consider costs in isolation.
When you combine credit card debt and the insane interest rates people pay on those credit card loans plus student college debt and then the cost of housing and transportation and food and pretty much the most expensive thing… Healthcare!
I resemble that remark. I make a lot of money though. So, I have stop spending to pay off the cc debt.
Yeah and lot of WFH, so less need for periodic appearance upkeep. I have a haircut maybe once a year now, instead of 4 previously. Stopped doing mani, Pedi, eyebrows etc. Didn’t do it during COVID and got used to it. I’m sure there are women still spending on grooming but lesser than before. even makeup would be way less if they’re going to the office 2-3 days a week vs 5 days.
And inflation is outpacing salary increases
My family is having to cut back because I’m on disability now due to a neurological condition. With COVID causing so many lingering effects, I wonder how many household budgets are getting slashed because the primary wage earner is on reduced disability payments (or dead).
This hits it on the head. People are stretched and cutting way back, at least for now.