Are we headed into a recession? How much will tariffs drive up the cost of living? Will I ever be able to build some savings?
A pervasive feeling of uncertainty about the economy, largely due to actions taken by the Trump administration, is “significantly impacting” people’s perception of financial well-being, leaving many feeling “stuck despite their best efforts,” according to the 2025 Financial Literacy and Preparedness Survey from the nonprofit National Foundation for Credit Counseling.
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The survey, conducted by The Harris Poll from Feb. 20 to March 17, found that “widespread concerns about the economic landscape contribute to a sense of financial stagnation” for millions:
More than half of U.S. adults (53 percent) said they can’t get ahead, no matter how hard they try.Nearly half (48 percent) feel like they are “constantly treading water financially,” and any unexpected expenses could pull them under.One-third (33 percent) report just getting by financially.
This anxiety is “strongly linked” to broader anxieties about the country, the survey report noted:
Six in 10 Americans (63 percent) worry that “partnership and volatility in the U.S. government” will negatively impact their personal finances in the coming year.A majority (57 percent) said the “current uncertainty in the U.S. economy” makes it impossible to achieve their long-term financial goals.A similar 57 percent blame this uncertainty for making it more difficult to manage or pay off their debt.
The feeling of being financially adrift often overshadows the confidence consumers have in their ability to make decisions about their finances.
“Feeling financially stressed isn’t a personal failing,” said NFCC CEO Mike Croxson. “As the survey makes clear, it’s often a reflection of the deep uncertainty consumers face today. Good intentions aren’t enough when the economic ground feels unstable.”
Changing Attitudes About Unpaid Credit Card Debt
The 2025 Financial Literacy and Preparedness survey finds that prevailing economic uncertainty is clearly influencing how Americans view and manage debt.
“Many people appear to be shifting their attitudes based on these economic feelings, evidenced by a majority agreeing uncertainty makes managing debt difficult and over a third expressing comfort using available credit even if a recession looms,” said NFCC senior vice president Bruce McClary. “This concerning outlook is further highlighted by one-fifth who feel the amount of debt doesn’t truly matter if they are going to carry it, suggesting ongoing anxiety may be normalizing potentially risky financial decisions.”
Warning Signs on Mounting Credit Card Balances
Americans are taking on more debt and having more difficulty paying down their credit card balances.
According to the Federal Reserve Bank of New York, total household credit card debt in the U.S. hit a new record high of $1.21 trillion at the end of last year, up $45 billion from the end of 2023. This trend reflects the growing reliance on credit cards to cover everyday expenses.
WalletHub‘s latest Credit Card Debt Study, released in April, revealed:
The average credit card balance per U.S. household is currently $11,303.The average interest rate on those unpaid balances is currently 21.91 percent.The delinquency rate (30 days or more) on credit card bills is 3.18 percent.
A Bankrate.com survey released in January found that 48 percent of credit cardholders carried debt from month to month, and nearly two-thirds (62 percent) of them have delayed or avoided other financial decisions because of their credit card debt.
“High inflation and high interest rates have been a nasty combination for credit card borrowers,” said Ted Rossman, senior industry analyst at Bankrate. “Many Americans have spent down their savings and added to their credit card debt in recent years due to the higher cost of living. And they’re not getting much relief on the rate front, making it harder to pay off that debt.”
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Maxing out on credit cards and making late payments will lower your credit scores, which can hurt you in many ways. Credit scores are used to determine interest rates on credit cards and auto loans. A poor score could prevent you from renting an apartment or getting cell phone service. In all but eight states, insurance companies can use credit scores to help set their auto or home premiums, or both.
“It’s crucially important to use credit wisely; to pay down debt and build up your credit scores,” McClary told Checkbook.
How to Get Your Finances Back on Track
If you find yourself trapped in debt and feeling uncertain about your financial future, there are resources to help you deal with those financial challenges and get you to a better place.
Checkbook advises contacting a nonprofit credit counselor; you can find one by visiting the National Foundation for Credit Counseling website. A certified counselor will help you review your financial goals, create a budget, and create a personalized action plan. The initial consultation is typically free.
“Waiting for something to change, or doubling down on the same destructive financial behavior, is the worst thing you could possibly do,” McClary said. “It’s time to turn that process around by taking action now.”
More Info:
From Checkbook:
Credit Cards: How to Find the Best One for You
Credit Unions and Small Banks Often Offer the Best Credit Card Rates
65 Things You (Probably) Shouldn’t Pay For
From Checkbook’s Consumerpedia podcast:
Too Much: How We Are Encouraged to Buy, Buy, Buy
Episode 80: Debt Busters: Real-Life Success Stories
Episode 50: Finding a Credit Card That’s Right for You
Checkbook.org is a nonprofit organization with a mission to help consumers get good service and low prices. It does this by providing unbiased ratings, advice, and price information. Checkbook is supported by consumers and takes no money from the service providers it evaluates. You can reach Herb at his website Consumerman.com.
