More Lower-Income Households Report Financial Vulnerability
According to a survey by The Financial Health Network and the University of Southern California, financial vulnerability among U.S. households has increased from 15% in 2025 to 17%, reversing prior progress. Less than 70% of respondents paid all their bills on time over the past year, down three points compared to last year. Additionally, those reporting unmanageable debt rose from 29% to 31%. The research highlights that since 2019, low-income consumers have shifted more than $10 billion toward essentials like groceries, while higher-income households increased spending on discretionary items. The decline in pandemic-era financial support and ongoing inflation are contributing factors. Consumer pessimism about their future financial situation has also grown sharply between 2020 and 2026. Student loan delinquencies have risen to over a quarter of borrowers, up from 21% last year. Meanwhile, consumer spending remains steady despite these pressures. Retail sales in key segments rose by 6.7% year-over-year in August due partly to later-than-usual back-to-school shopping and early holiday preparations.
Topics: Consumer Spending Debt Levels Financial Vulnerability Inflation Impact