The stubbornly high cost of consumer goods continues to be a drain on consumers in the United States. The number of consumers in the U.S. classified as financially unhealthy[1] has climbed to its highest level in 12 months, as measured by JD Power.
As their struggles continue, consumers are prioritizing their payments and coming up with strategies for what bills would go to the back of the line should that become a necessity. While consumers plan for the worst, there are provider programs and banking tools that may be able to help, but a knowledge gap exists, particularly among those that stand to benefit from assistance the most.
Financial Health Shows Strain
Financial health has been on a steady decline since October. In January, the proportion of consumers who are financially vulnerable rose to 46%. That increase brings the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, to 72%: its highest mark in 12 months. Holiday spending may have had an impact, and if so, we would expect to see a correction within the next month.
The persistently high price of consumer goods has become an accepted reality. Overall, 68% of consumers say the price of goods is increasing faster than their income in January, largely in line with the rate of the past six months. This could be an indication that prices have had a snowball effect, and consumers are finally reaching a tipping point. Vulnerable (74%) and stressed (79%) consumers have notably higher levels of concern regarding inflation.
When Hardship Hits
With financial health slipping, some consumers are making difficult choices on what bills need to be paid in a timely manner. More than half (56%) say that if they could not pay their bills on time, they would skip or delay entertainment subscriptions or other memberships. That includes 62% of healthy consumers and 61% of those over the age of 40. Interestingly, 29% say that they would skip their internet or mobile phone bill, followed by a credit card payment (28%).
In the event of financial hardship, consumers have options to contact their provider for a grace period, payment assistance or inclusion in a hardship program. But according to JD Power data, there is a gap in provider-contact knowledge. While 73% of consumers say they know how to contact their internet or mobile phone provider, just 42% say they know how to do the same for a personal or student loan provider. What’s more, knowledge on how to contact these providers is notably higher among healthy consumers and those over the age of 40 – the populations that are less likely to need help.
Can Banks Help Stave off Hardship
While consumers are certainly planning for a worst-case scenario, they should be working just as hard on a path forward. The price of goods doesn’t seem to be declining anytime soon, and many consumers could have to come up with strategies to stay afloat.
One way banks may consider intervening is a huge engagement push around digital tools. More than one-third (37%) of consumers say they are willing to use digital banking tools, such as budgeting and spend management tool, more, including 61% of overextended consumers and 54% of consumers under the age of 40. If banks can find a way to expand the reach of these tools, it could mitigate some of the financial risk exposure that consumers face.
Find out More
This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in January 2026. It was authored by Jennifer White, senior director of banking and payments 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, J.D. 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.