Economic Challenges - In 2025, economic challenges such as tariffs and inflation significantly impacted household finances, with the effective tariff rate on imported goods rising to 11.2% [3] - The inflation rate for 2025 remained around 3%, compounding the financial strain on consumers who have faced increasing prices since 2020 [4] - High interest rates on personal loans, credit cards, and mortgages have persisted, despite modest cuts from the Federal Reserve, further straining consumer budgets [4] Financial Regrets - A Credit Karma survey revealed that nearly half of Americans reported worsening finances over the past year, with 38% regretting not saving enough, 28% citing impulse spending, and 21% having too much high-interest credit card debt [1] - 20% of Americans indicated they fell behind on bills, including mortgages and credit cards, while 19% struggled to afford basic necessities like groceries [5] - A significant portion of consumers (67%) attributed their budget difficulties to rising costs and macroeconomic forces [5] Consumer Behavior - The concept of "doom spending" has emerged, where individuals engage in mindless spending as a coping mechanism for stress or anxiety, with 44% of credit card holders carrying a balance month-to-month [6] - A 2024 Bankrate survey found that 38% of respondents were willing to incur debt for discretionary purchases, indicating a concerning trend in consumer behavior [6] Outlook - Despite the financial challenges, 45% of respondents in the Credit Karma survey expressed optimism about turning their finances around in 2026 and meeting their financial goals [2]