It seems like financial experts across the globe have been warning of a potential recession every few months since the COVID-19 pandemic. It’s easy to believe those warnings when employees are laid off by the masses, businesses file for bankruptcy, and the majority of American households wonder how they will pay their bills at the end of each month. While we aren’t in a recession yet, there are signs that indicate that one could be coming. Some of them have been identified by economists, but the ones that are more fun to discuss are simply observed by the general population. You’ve probably made your own mental notes of signs that the economy hasn’t been doing well. Read on to see if any of them made our list. If excessive debt has you considering bankruptcy, contact our firm today at 602-609-7000 for more information.
The Rise of Resale Apps
The concept of selling old items on websites like Ebay and Craigslist has now been around for decades. But when costs rise and salaries remain stagnant, more people will turn to them to earn a few dollars and make ends meet. Additionally, more shoppers will use them to try to cut down on spending on clothes. Ebay stock rose by 15% from 2025 to 2026. More recently, apps like Depop, Thredup, and Poshmark have revolutionized the world of online thrifting. You may have noticed advertisements for new apps like Vinted, or resale options through existing brands such as Lululemon. At the same time, many vintage lovers are turning away from stores like Goodwill due to high prices. This trend shows that the increase in thrifting’s popularity is for price, not the love of vintage, and that more people are willing to put the effort into selling their clothes to make a little extra cash.
Brunettes and Bare Nails
If you spend enough time in Arizona, you’re probably aware that the beauty standards for women here involve being highly polished, and usually having blonde hair. It can be an eye-catching look, but the price tag can be eye-watering. Maintaining fresh highlights requires visiting the salon every 6-8 weeks, with each appointment costing hundreds of dollars before tip. The cost of these appointments will look more like a car or mortgage payment if the woman has hair extensions. But it doesn’t just stop at blonde highlights if a woman wants to achieve the “Scottsdale Look.” That also requires nails, eyelash extensions, tanning, fillers, and whatever eyebrow treatment is currently in style. All of these add up quickly, but at the end of the day, these are discretionary expenses. Most households will prioritize keeping food on the table over trips to the nail salon and esthetician. A good brunette is much easier to achieve at home with a box of dye than blonde. If you’ve noticed more brunettes with bare nails around town, it could be due to the rising cost of living and stagnant job market.
Restaurants Shutting Down
When you’re trying to cut back your budget, one of the first expenses you probably slash is dining out at restaurants. The cost of food has skyrocketed while quality has plummeted, so you may have already been dining out less without budgetary considerations. Restaurants have narrowing margins during these types of conditions, too, and can be susceptible to debt issues during a cost-of-living crisis. But everyone should take heed when numerous famous companies declare bankruptcy or go out of business in quick succession. Salad And Go is one of the most recent drive-thrus around Arizona to go under, but there are several major names you’ve probably seen around town that have recently filed for bankruptcy or shut down operations. Another downside to a chain of restaurants closing down is how many employees will lose their jobs. There can be dozens of employees working at a large and busy restaurant, although the busy ones typically aren’t the ones filing for bankruptcy.
Early Retirement Withdrawals
It’s common sense why someone would want to have as much saved up as possible before retiring from the workforce. But that stash of funds could be highly tempting when someone is behind on bills, out of a job, etc. That’s why early retirement withdrawals are another sign of a potential recession. Data shows that hardship withdrawals from 401(k) accounts are up for 2026. But the median withdrawal amount is $1,900, indicating that many of these withdrawals are for short-term emergencies. Unfortunately, nearly half of those hardship withdrawals took a second withdrawal in the same year, and 21% took a third. On the flip side, some economists argue that more people than ever are taking withdrawals from their retirement accounts because more people than ever actually have those retirement accounts. Either way, those who do withdraw early from these accounts are subject to penalties that make the withdrawals even more costly.
Cars with Cosmetic Damage
Having a pristine vehicle can be a point of pride, especially in a car-dependent state like Arizona. At the same time, having a perfect-looking vehicle isn’t absolutely essential to getting to where one needs to go. So if you have the choice between paying your rent or mortgage or paying to get a dent in your car fixed, you’ll probably prioritize keeping a roof over your head. Accepting a minor cosmetic flaw in your vehicle could also mean extra money in your pocket. If you are in an accident caused by another driver that only causes cosmetic damage without totaling the vehicle, the insurance company may offer you a healthy check, presumably to allow you to go to the body shop and get it fixed. But the insurance company does not follow the driver after the claim to make sure they actually get the vehicle repaired. They also won’t take back those funds just because the driver’s car is still dented. Someone who is planning to run their vehicle into the ground rather than try to maintain its resale value might end up just keeping the cash. If you’ve seen more cars with cosmetic damage on Arizona’s roads lately, this could be an explanation as to why.
File Your Chapter 7 or Chapter 13 Bankruptcy with a Team of Arizona Debt Relief Professionals
Paying for bankruptcy representation when finances are already an issue may seem counterintuitive. But there are so many things that can go wrong in either a chapter 7 bankruptcy or chapter 13 bankruptcy filing. Assets can and will be seized if bankruptcy exemptions aren’t correctly applied. The trustee could claw back preferential payments to friends and family members. The case could be dismissed, letting the protections from the automatic stay fall so creditors can move in for collection. The debtor could even face felony bankruptcy fraud charges for their conduct surrounding a bankruptcy filing. All of this is unnecessary stress added on top of what is already a stressful situation. But you can reduce the risk of these types of consequences when you file for bankruptcy with an experienced attorney. And you can reduce your costs to get started by choosing a firm with flexible payment plan options starting as low as Zero Dollars Down. Schedule your free consultation with our firm today by calling 602-609-7000.
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