Americans are 'entrenched' in financial stress amid debt and price pressures

Economic conditions like gas prices well above $4 a gallon, according to AAA estimates , and annual inflation nearing 4%, per the Bureau of Labor Statistics, are pushing Americans' financial stress levels higher. The National Foundation for Credit Counseling expects Americans' economic stress levels to tick back up in the second quarter of the year after a slight fall in the first quarter, according to its quarterly Financial Stress Forecast released on Wednesday. The forecast considers data on consumer counseling behavior as well as other broader economic indicators to predict trends in Americans' financial stability . It rates Americans' financial stress on a scale of 1 through 10, with 10 as the highest stress level. The rating has remained at or above 6.3 since the end of 2024, compared with a post-pandemic low of 3.5 in 2021. The forecast for the three months ending in June: 6.7. Americans "are entrenched in financial stress ," Bruce McClary, senior vice president of membership and media relations at NFCC says — the result of elevated prices on top of near-historic highs of consumer debt on credit cards and auto loans . The nonprofit organization, which provides education and solutions for individuals struggling with their finances, especially debt management, reported a "significant surge" in consumers reaching out for credit counseling, which could be a warning sign for the broader economy, NFCC says. …