The BareStory
Recent survey data suggests a majority of Americans are concerned about the cost of living. According to a December Marist poll of more than 1,400 adults, 70% of respondents believe the cost of living is unaffordable. A separate Credit Karma survey indicated nearly half of Americans feel their financial situation has deteriorated compared to the previous year. Data from the Bureau of Labor Statistics for November 2025 showed year-over-year price increases for items such as beef, at 15%, and coffee, at nearly 19%.
Despite these pressures, data from the Bureau of Economic Analysis showed that consumer spending increased on a quarterly basis. To manage rising costs, some consumers are taking on more debt. Data from the New York Federal Reserve showed that U.S. credit card debt surpassed $1.2 trillion in the third quarter of 2025. A LendingTree survey found that more people are using "buy now, pay later" services for groceries, while research from McKinsey & Company indicated more adults were drawing from their savings in the fourth quarter of 2025.
The topic has also been a subject of political discussion. In a December speech, President Donald Trump referred to the term "affordability crisis" as a "con job by the Democrats." In contrast, Representative Sarah McBride of Delaware stated that it is a "reality felt by Americans everywhere." One financial analyst, Will Auchincloss of EY-Parthenon, claimed that consumers are "trying to muscle through" the period of inflation.
Looking ahead to 2026, some economists at Deloitte and Fitch Ratings have predicted that inflation will remain at or above 3%. While one Credit Karma survey found a sense of consumer optimism for the new year, a Bankrate survey reported that 32% of Americans anticipate their financial conditions will worsen. Leanna Haakons, a financial professional at Black Hawk Financial, has advised households to focus on paying down debt, cautioning about potential future difficulties with employment.
How it may affect me
As a U.S. reader:
• Your grocery bills may be higher, as data shows significant price increases for items like beef (15%) and coffee (19%), directly affecting your household budget.
• You may find yourself using more debt or savings to cover costs, reflecting national trends of rising credit card balances and more adults drawing from savings.
• Financial planning for the coming year is uncertain, with economists predicting continued inflation while public surveys show mixed expectations for personal financial conditions.
