Prosper Marketplace, the first peer-to-peer lending platform in the United States, has announced the results of its "Economic Perceptions & Personal Finance" study, which indicate a significant decline in financial confidence among consumers. The survey found 46% of consumers feel their income has not kept up with inflation, and only 31% believe their personal finances are better than they were before the COVID-19 pandemic.

"No one can serve consumers effectively without knowing what their concerns and needs are, and how they have evolved over time," said David Kimball, CEO of Prosper. "The results of our latest survey indicate that consumers are less confident about their finances than they were eight years ago, and less than half believe conditions will improve within the next five years."

The 2024 Prosper study—the follow-up to a previous study in 2016—reveals:

• Economic Perceptions: 45% of Americans feel the economy had worsened since the pandemic, but 48% thought things would improve in the next five years. Men were more optimistic (55%) than women (41%).
• Investment Gaps: Most Americans aren't investing. A whopping 68% of respondents said they had no investments, and women were disproportionately affected—nearly 8 in 10 reported not investing.
• Debt Troubles: Credit card debt rose fast. In 2024, 63% of users said they aren't able pay off their balances in full, up sharply from 45% in 2016.
• Living Paycheck to Paycheck: More people feel stretched. By the end of 2024, 57% said they lived paycheck to paycheck, compared to 48% in 2016.
• Low Financial Confidence: Only 42% of respondents feel confident they could handle a financial emergency, leaving many vulnerable to unexpected costs.

"Prosper remains committed to developing the accessible, affordable solutions that help create more opportunities for Americans to achieve their financial goals during present market conditions, and over the long term," Kimball added.

The survey of U.S. household financial decision-makers aged 18 and over was prepared by Qualtrics Edge. To read the entire survey, please click here.