Americans remain under intense financial pressure, a recently released forecast found — even as some official banking data suggests the economy is stabilizing.
On a scale of one to 10, Americans’ financial stress was 6.6 for first quarter of the year, according to the National Foundation for Credit Counseling. It said its Financial Stress Forecast, or FSF, is likely to inch up, to 6.7, by the end of the current quarter — warning that consumers remain stuck in a “sustained period of elevated financial strain.”
The nonprofit credit-counseling group said the latest figures show debt continues to constrain household budgets, suppress savings and limit financial flexibility.
“Rather than improving, the persistence of the FSF within the 6.4–6.8 range suggests that high consumer financial stress has become entrenched,” the organization said on its website.
The forecast history shows financial stress rising steadily over the past two years, climbing from 4.7 in late 2022 to a peak of 6.8 in late 2025 before easing slightly this year. The current 6.6 reading remains far above pre-crisis levels and suggests consumers remain trapped in a prolonged stretch of debt pressure.
The latest reading is nearly double a post-pandemic low near 3.5 in 2021, according to the National Foundation for Credit Counseling, or NFCC.
The forecast is based on a proprietary model that combines counseling-intake data from NFCC members with Federal Reserve indicators tied to consumer loans, delinquencies and charge-offs.
NFCC claims the model predicts future delinquency and charge-off rates with “95% accuracy,” though the organization has not publicly released its methodology or independent validation data.
The broader economic picture paints a mixed portrait of the American consumer.
Official data cited in the report show total US household debt ticked up to $18.8 trillion in the first quarter of 2026 — an increase of $18 billion, or 0.1% — while credit-card balances stood at $1.25 trillion.
Debt-service burdens have also risen sharply since the pandemic, leaving households with less breathing room for emergencies and discretionary spending.
At the same time, Federal Reserve data show bank credit-card delinquency and charge-off rates eased somewhat compared with last year, suggesting financial conditions may have plateaued at a painfully high level rather than spiraling further downward.
The NFCC report also cited Federal Reserve survey data showing only 63% of Americans said they could cover a $400 emergency expense using cash or its equivalent — unchanged from recent years but down from a post-pandemic high of 68% in 2021.
The forecast’s author said the index should be viewed less as an official economic gauge and more as an “early-warning signal” generated from distressed-household behavior.
Americans have plenty of reason to be stressed financially.
While inflation may have cooled from its 2022 peak, they are still paying sharply higher prices for everyday essentials. Consumer prices rose 3.8% in April from a year earlier, while grocery prices climbed 3.2% and restaurant prices rose 3.6%.
Gas prices have surged 28.4% over the past year, while broader energy costs jumped nearly 18%, adding fresh pressure to household budgets.
Many staple foods continue to get more expensive.
Ground beef prices have soared nearly 19% over the past year to a record $6.90 per pound, steak prices jumped 17.1% and coffee prices climbed 29%, according to federal inflation data.
Even prices that have cooled remain far above pre-pandemic levels. Egg prices have fallen from last year’s avian-flu spike, but a dozen eggs still costs about 54% more than they did in early 2020.
Rents, airline fares, utilities and household goods also posted fresh increases in April, underscoring how higher costs continue to spread across the economy.