This post is part six of our 2026 Money Confidence Roadmap, your monthly guide to reducing stress and building confidence with money.
Multiple recently released studies show rising debt levels, financial anxiety, and how Americans are adjusting their budgeting and spending in response.
- The New York Federal Reserve’s latest report shows total U.S. household debt just ticked up by $18 billion, hitting an all-time high of $18.8 trillion, including mortgages.
- Gallup finds 31% of Americans say inflation is their number-one problem, and a record 55% say their household financial situation is getting worse, not better.
- JD Power shows half of Americans are “buying fewer items to stay within a budget,” and “38% found new ways to earn extra income.”
While you can’t control national economic trends, you can control how you protect your own wallet, and that is exactly where part six of our 2026 Money Confidence Roadmap comes in. It serves as your monthly guide to reducing stress, trimming unnecessary costs, and building true confidence with your money.
Cutting back proves to help
JD Power found that 68% of Americans are classified as financially unhealthy, and 25% say they are using savings just to get by day to day. But the same data shows the people pulling ahead are taking concrete action: buying fewer items, sticking to budgets, and finding extra income.
A written budget, even a rough one, is the single most effective tool for finding money you didn’t know you had. Start by tracking every expense for one month.
Your grocery bill is one of your biggest levers
Grocery prices spiked 11.4% in 2022 and have kept climbing since. TheUSDA projects food-at-home prices will rise another 2.4% in 2026, with beef and veal, sugar and sweets, and nonalcoholic beverages seeing the sharpest increases.
Egg prices are projected to fall nearly 30% and dairy is also expected to decline. So, shop around those categories.
Swap beef for chicken or eggs two to three nights a week and the savings add up fast. Buy store-brands for staples like sugar, pasta, and canned goods where the price gap is widest.
High-interest debt should be your first target
Americans are carrying $1.25 trillion in credit card debt, according to the New York Fed. And with average card rates now above 20%, minimum payments barely cover the interest.
According to Gallup, 28% of Americans are now worried they won’t be able to make their minimum monthly debt payments. That number has jumped 11 points since 2021. This tells us that millions of people are actively facing the threat of falling behind, hurting their credit, and losing their financial peace of mind.
Once you’ve cut spending and freed up even $50-100 a month, direct it to your highest-rate balance first. This is the avalanche method, and it minimizes total interest paid over time. If your balances are too much to handle on your own, call a nonprofit credit counseling agency.
You may qualify for a debt management program, which can reduce your interest rates and consolidate your payments into one monthly payment.
Strengthening credit doesn’t require paying everything off
Credit utilization — how much of your available credit you’re using — accounts for about 30% of your credit score. Paying down $500 on a $1,500 balance can noticeably improve your score within one billing cycle.
A stronger credit score means better terms if you need to refinance, take out a loan, or even negotiate a lower rate on an existing card. Small, consistent changes compound over time. Lower your grocery bill this month, put an extra $50 toward debt next month, and check your credit utilization the month after. That’s the roadmap. Each step builds on the last, and by the end of the year the progress adds up in ways that matter.
