Equifax analysis shows liquid wealth drives consumer financial resilience
EFX•Equifax analysis says access to liquid wealth is the clearest indicator of household financial resilience. Over six quarters, middle-tier households with liquid wealth were more likely to advance, while nearly all households moving down lacked it.
1. Liquid wealth and resilience
Equifax analysis identified access to liquid wealth, rather than income or credit tier alone, as the clearest indicator of household financial resilience. Tracking middle-tier consumers over six quarters showed households with liquid wealth were more likely to advance; nearly all downward movers lacked it.
2. A changing consumer landscape
The financially thriving and struggling populations have both grown in recent years, shrinking the middle tier and weakening average-consumer measures for lending strategies. Lending growth remains conditional on household cash flow, confidence and borrowing costs, reinforcing the need to assess income and wealth alongside credit scores.
