Recent NFCC data indicate more pain on the horizon for consumers already struggling to manage debt and increased cost of living.
Washington, DC – The National Foundation for Credit Counseling (NFCC) today released its latest Financial Stress Forecast, revealing a startling surge in consumer financial distress. The data reveal a rapidly deteriorating financial landscape for Americans, with many teetering on the brink of a severe financial crisis.
The NFCC’s Debt Burden Scale measures consumer financial health, with Stage 6, “Tightening the Belt,” signaling a critical level of financial strain where households are cutting back on food expenses and personal savings. The latest forecast places consumers squarely in Stage 5, “Debt Looms,” but dangerously close to this tipping point. This alarming trend underscores the escalating challenges faced by millions of Americans unable to keep up with increasingly unmanageable debt and the high cost of living.
“The numbers don’t lie,” said Mike Croxson, CEO of the NFCC. “We’re witnessing a perfect storm of economic pressures pushing consumers to their limits. The rapid acceleration of financial stress in such a short period is unprecedented and demands immediate attention.”
It’s important to note that the NFCC’s data are derived from individuals seeking counseling, suggesting that the overall level of financial stress is likely even higher within the population at large.
“Time is not your friend if you are struggling to pay your creditors,” Croxson continued. “We urge anyone feeling overwhelmed by debt to seek help immediately. Nonprofit credit counseling can provide essential guidance and support to navigate these challenging times.”
The NFCC Financial Stress Forecast serves as a critical early warning indicator of potential economic instability. As consumer financial health deteriorates, it can have far-reaching consequences for the broader economy, including increased loan defaults and economic slowdown. For more details, email press@nfcc.org.
About 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 growing 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, student loans, housing decisions, and overall money management. For expert guidance and advice, visit www.nfcc.org.