The data behind the U.S. shopper keeps flashing the same signal. Homes are stretched thin. Debt loads are at near-record highs. The groups that help people dig out are getting a lot more calls.
The National Foundation for Credit Counseling rates the country's money stress on a scale of 1 to 10. A 10 score means the worst.
The forecast for the second quarter just came in at 6.7. That score has stayed at or above 6.3 since the end of 2024.
The low after the pandemic was 3.5 in 2021. So in just a few years, money stress has almost doubled.
Bruce McClary, an SVP at NFCC, said folks in the U.S. are "entrenched in financial stress." High prices stack on top of record credit card and car loan debt.
CEO Mike Croxson said the new score shows pressure has hit a "tipping point." That matters for investors because the shopper drives about two-thirds of the U.S. economy.
When the shopper cracks, the wider market feels it too. Even early budget pressure shows up in earnings a few months later. Market Briefs breaks down what data like this means for your money - in five minutes a day, with a free investing class when you sign up.
Debt plans are getting more attention because they work. Credit groups deal with banks to lower rates on credit cards and personal loans.
Rates can drop from 25% to 10% or lower. Late fees and over-limit fees stop too.
That kind of relief can free up cash. Some folks then use the cash to build a second income or rebuild a savings cushion.
David Devaney is one case. The 80-year-old had piled up $45,000 in credit card debt.
He had used the cards for daily costs and to help his kids. After a back injury in 2020, he called his banks for help.
They turned him down. He then went through American Financial Solutions, an NFCC partner.
The group worked his minimum payment down from about $1,200 to $900. He kept paying $900 anyway, and by 2024, the debt was gone.
The plans usually cost $30 to $40 a month. Fees can be waived for those in extreme need.
Many enrollees also pick up tools like bill cuts to keep monthly costs in check.
McClary said folks who get debt under control often clean up their wider budget too. Most just want to get back to a level of cost they can handle.
Michael Reynolds, a certified financial planner in Indiana, said he has sent clients to similar plans in the past. He has seen good results for those with high credit card debt.
Gas prices above $4 a gallon and yearly inflation near 4% are still squeezing budgets. The NFCC says it has seen a "significant surge" in people reaching out for help.
The stress score has stayed high for more than a year. The market has not fully priced that in.
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