Households Continue to Manage Debt While Running on Empty

WASHINGTON, Aug. 11, 2026 /PRNewswire/ -- The National Foundation for Credit Counseling® (NFCC®) today released its Financial Stress Forecast (FSF) for the second quarter of 2026, reporting a score of 6.7 out of 10, up from 6.6 in the previous quarter, matching the prior projection. The forecast also projects financial stress will remain at 6.7 in Q3 2026, suggesting that elevated financial strain has become a persistent reality for many American households.

While NFCC's proprietary consumer debt metrics show modest improvements in household debt conditions, overall financial stress remains stubbornly high. At the same time, total revolving credit outstanding increased from $1.06 trillion to $1.08 trillion, highlighting the growing dependence on credit as consumers work to manage rising costs and constrained cash flow.

The latest forecast points to a growing disconnect in household finances: Consumers appear to be making progress managing existing obligations, yet many are doing so with diminishing savings and very limited financial flexibility. Unfortunately, this also means that they have developed an increasing reliance on credit to bridge budget shortfalls.

"Consumers are working hard to manage their debt, but financial stress remains stuck at unusually high levels," said Mike Croxson, CEO of the NFCC. "For many households, the financial cushion isn't there when unexpected expenses occur."

Key Findings from the Q2 2026 Financial Stress Forecast

• Consumers Are Managing Debt, but Financial Stress Is Not Easing
  The FSF reached 6.7 in Q2 and is projected to remain the same in Q3. Rather than signaling a broad-based recovery, the forecast suggests that elevated financial stress has become entrenched. Many households continue to meet their obligations, but the underlying financial pressures that drive stress have not materially improved.

• Debt Indicators Improve While Credit Reliance Grows
  NFCC's proprietary debt metrics have improved modestly over the past two quarters. However, rising revolving credit balances indicate that many consumers are increasingly relying on credit to maintain day-to-day financial stability. This combination of improving debt management and growing credit dependence suggests that household budgets remain under significant strain.

• Reduced Financial Buffers Leave Households Vulnerable
  Since reaching a post-pandemic low of 3.5 in 2021, the FSF has steadily climbed before stabilizing near current levels. Persistent inflation, higher borrowing costs, and depleted emergency savings have reduced the financial cushion many households once relied upon, leaving them increasingly susceptible to unexpected expenses and income disruptions.

Early Action Can Help Prevent Financial Setbacks

The NFCC encourages consumers to seek guidance before financial strain escalates into missed payments, mounting debt, or long-term financial hardship. As household budgets remain under pressure from higher costs and limited financial flexibility, taking proactive steps to review spending, strengthen cash flow, and address debt challenges can help consumers regain control before small setbacks become larger financial obstacles.

"The encouraging news is that many consumers are still meeting their financial obligations," said Mike Croxson, "The concern is that they're doing it with less financial cushion than they've had in years. When budgets become this tight, a relatively small setback can have outsized consequences. That's why seeking trusted help early remains one of the most effective ways to protect long-term financial stability."

About the Financial Stress Forecast

The NFCC Financial Stress Forecast is a forward-looking indicator that combines proprietary data on consumer counseling behavior with broader economic markers to predict future trends in household financial stability. Unlike backward-looking delinquency reports, the FSF identifies stress before it results in charge-offs.

About the NFCC

Founded in 1951, the National Foundation for Credit Counseling (NFCC) is the oldest nonprofit dedicated to improving people's financial well-being. With a nationwide network of NFCC Certified Credit Counselors serving 50 states and all U.S. territories, NFCC nonprofit counselors are financial advocates, empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, loans, housing decisions, and overall money management. For expert guidance and advice, call 800-388-2227 or visit www.nfcc.org.

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SOURCE National Foundation For Credit Counseling