- The total share of financially unhealthy consumers in the U.S. rose to 71% in May
- 81% of consumers report changes to their day-to-day spending, including skipping meals and delaying healthcare appointments
- 39% say they have more stress about their job security than they did six months ago
The financial health[1] of consumers in the United States continues to deteriorate. And as inflation continues to climb to its highest level in three years, consumers are beginning to take drastic cost-cutting measures to deal with the high price of goods.
Overall, 81% of consumers say they’ve made changes to their day-to-day spending to address mounting costs. Those changes include limiting discretionary spending, such as dining out at restaurants, but consumers are also foregoing necessities, such as skipping meals or delaying or foregoing healthcare. The stress doesn’t end there. Consumers also have significant fears about job security. Beyond these economic pressures, many have also recently been victims of fraud, forcing consumers to navigate through a very difficult landscape.
Financial Health Dips
In May, the total share of financially unhealthy consumers, defined as those who are financially vulnerable, overextended or stressed, rose to 71%. That marks the highest number of financially unhealthy consumers since January and just 1 percentage point away from a 12-month low in overall financial health.
Affordability Concerns Intensify
Nearly half of consumers (48%) say monthly expenses feel less affordable than they did six months ago. That reflects a 4-percentage point drop from April, however that may be deceptive. Those that felt affordability was roughly the same rose 4 percentage points, hinting that consumers may simply just be getting acclimated to higher prices.
Most consumers continue to modify their spending habits, with 81% reporting changes to their day-to-day expenses in May. Most concerning is that some cuts are not coming from discretionary spending. In fact, 30% of consumers say they cut back on groceries or skipped meals in the last 30 days, while 19% have delayed paying a bill, and 16% skipped or delayed a medical visit.
Grocery and gas prices continue to place the greatest strain on consumers, by a wide margin. Overall, 42% say that the high cost of groceries is causing the most stress, with gas ranking a close second at 38%. Interestingly, 18% say that credit card or other debt payments are too high, which indicates a portion of consumers are taking on high-interest debt to address day-to-day expenses.
Concerns about job security
It’s not just prices that have consumers concerned; they are also contending with worries about job security and rising instances of fraud. Overall, 18% of consumers report consistently high stress around job security, a level that is highest among vulnerable consumers and those under the age of 40. An additional 39% say they experience occasional or moderate stress about their job security. What’s more, 39% report higher stress around job security compared to six months ago.
The Continued Threat of Fraud
If that wasn’t enough, financial scams remain widespread, with impersonation scams most common and younger consumers consistently more likely to report experiencing several types of fraud. The most common fraudulent interaction is someone claiming to be from a government agency or business (37%), followed by the offering of a specific type of investment of financial product (27%).
When consumers experience fraud, some say they do not report it due to the feeling of shame for falling prey to a scam. Of those consumers that have had fraudulent interactions, 23% say they were so embarrassed that they did not report the incident to their bank or the police.
Quieting the Noise
In times of financial difficulty, the best advice is often for consumers to focus their attention on a singular goal at a time. Cut spending or pay down the highest interest card or downsize their housing. Unfortunately, right now, consumers are feeling pressure from all sides.
That’s where financial institutions can help. Consumers are looking for directions. When to take a loan, what budgeting tools work, how to craft a savings strategy, all in the face of obstacles that can seem overwhelming. They are also looking for guidance on how to identify and avoid fraud, as well as confidence that their money and accounts are protected.
By stepping in and being active partners in helping their customers focus their efforts on where they will make the most difference, while also providing education and protection against fraud, banks have an opportunity to help their customers simplify a complex landscape.
Find out More
This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in May 2026. It was authored by Jennifer White, managing director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.
Media Contacts
Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]
[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.