Consumer Financial Stress
Current trend: Holding · Category: Money · Last updated: August 13, 2026
Current situation
Credit card balances remain elevated while delinquencies have gradually risen from historic lows. There has been a 50% jump in bankruptcies over the past three years. Consumers continue spending but are showing increasing signs of financial strain. The biggest exception is the higher end of earners, who have ridden years of stock market gains and continue to spend aggressively. The latest report from the Fed shows a continued rise in loan balances 90 or more days past due. While some of that is banks carrying loans on their books for longer instead of writing them off, there is still a multi-year trend of delinquent accounts, especially among poorer and younger consumers.
Why we're watching
Household finances ultimately determine spending, and consumer spending drives roughly two-thirds of the U.S. economy. A substantial and prolonged decline in consumer spending could drive the economy into recession.
What to watch for next
Credit card balance growth, Credit delinquencies, Bankruptcy filings
Signal history
- 2026-08-13 — Credit card debt rises to $1.26 trillion, nearing all-time record Americans' credit card debt increased by $21 billion in the second quarter of this year. The total is just shy of a record debt burden. Overall, credit card balances trail mortgages, autos, and student debt as the heaviest burdens. **Bottom line, rising prices and heavier spending are pushing credit card balances to near record highs, with increasing delinquencies. This is a concern if the economy slows and unemployment rises.**
- 2026-08-12 — 15-year high in credit card balances 90+ days delinquent Credit-card loans that are 90 or more days past due has been rising steadily since about 2023. measures of distress have risen to the highest level since the aftermath of the 2008 financial crisis. Delinquencies are staying on credit reports much longer than they used to, so it's not exactly comparable, but falling-behind rates are high for those in low-income areas and for younger people. **Bottom line, there is strong (and rising) evidence that those who don't own assets like real estate and stocks are struggling with meeting everyday expenses.**
- 2026-08-08 — Consumers Cut Extras as Credit Card Debt Nears a Record Credit card debt is nearing record levels, which is forcing consumers, particularly those living paycheck-to-paycheck, to cut back on spending. The dependence on high-interest credit is a stopgap for covering everyday expenses. **Bottom line, this trend signals risks for financial stability and broader economic health.**
- 2026-08-04 — Paycheck-to-paycheck living hits a five-year low Just 48% say they're living paycheck to paycheck, down from 69% last year and the lowest level in five years. However, 95% of Americans say rising costs and economic uncertainty have made sticking to a budget a necessity.
- 2026-07-29 — More Americans are going bankrupt More than half a million personal bankruptcies were filed last year, a nearly 50% jump from three years earlier. It shows that a growing number of Americans have reached the point where the pressure of their debt has overcome the stigma of bankruptcy.
- 2026-07-24 — Paycheck Boost Gives Low-Income Workers a Breather Working-class Americans have experienced a paycheck bump in recent months after tax breaks and some signs of faster earnings growth.
- 2026-07-16 — Credit card delinquencies remain above pre-pandemic levels. There is a K-shaped economy with "the rich" doing extremely well in markets while everyone else struggles...this helps confirm it.