'People are not doing OK': Suze Orman says despite strong stock market and low unemployment rate, Americans are struggling with their 'individual economy'

But Orman emphasized there’s a difference between the overall economy and people’s “individual economy” — especially in the face of higher grocery store prices and borrowing costs.

“I think people are not doing OK,” she said. “When you look at the overall — which I’m not sure means a lot — it looks pretty good. But when you look at people’s individual situation, in my opinion, they’re still struggling.”

Orman says many folks can’t afford the things they need

Orman, who previously sounded the alarm over a looming financial “pandemic” late last year, says even though inflation might be slowing down compared to previous years, she’s still worried about folks who don’t have money.

Inflation actually ticked up to 3.2% in February, driven by higher rents and gas prices. According to Zillow, the median rent for all property types in the U.S. as of March 20 was $2,050, a $50 increase from the previous month.

Meanwhile, the Federal Reserve has indicated it’s in no rush to cut the federal funds rate just yet, which means borrowing costs will remain high for the time being.

“People still don’t have the money they need to afford the things that they need,” Orman said, noting a large portion of Americans lack the funds to cover a $400 emergency expense.

To make matters worse, she explained, if these people are faced with an unexpected expense, like a pricey car repair, they could be forced to foot the bill with their credit cards, triggering a “cycle of debt” if they can’t pay off their balances in full and on time.

With interest rates so high, relying on credit cards or loans to cover big expenses can exacerbate an already bad financial situation.