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Despite some official banking indicators hinting at economic stability, many Americans are still grappling with significant financial stress, according to a newly released forecast.
The National Foundation for Credit Counseling reports that the average financial stress level for Americans was 6.6 on a scale of one to ten during the first quarter of this year. The organization predicts that this number could rise slightly to 6.7 by the end of the current quarter, highlighting a continued period of heightened financial strain for consumers.
The nonprofit credit counseling group points out that these figures indicate ongoing debt issues are straining household budgets, reducing savings, and curbing financial flexibility.
“The persistence of the FSF within the 6.4–6.8 range suggests that high consumer financial stress has become entrenched,” stated the organization on its website, emphasizing the enduring nature of financial challenges faced by many.
Historical data from the forecast reveals a gradual increase in financial stress over the past two years. The index rose from 4.7 in late 2022 to a peak of 6.8 by late 2025, with only a slight decrease observed this year. With the current reading standing at 6.6, it remains significantly higher than pre-crisis levels, indicating that consumers continue to struggle with persistent debt pressures.
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.