US Adults Stressed by Rising Costs
Analysis based on 8 articles · First reported Aug 04, 2025 · Last updated Aug 04, 2025
The widespread financial stress among U.S. adults, particularly concerning grocery and housing costs, indicates a potential slowdown in consumer spending on non-essentials, negatively impacting retail and consumer discretionary sectors. The increasing difficulties in repaying 'buy now, pay later' loans, offered by companies like Block, Inc. — Afterpay and Klarna, suggest a growing risk in the consumer credit market and could lead to tighter lending conditions or increased defaults.
A new poll conducted by The Associated Press and University of Chicago reveals that the vast majority of adults in the United States are experiencing significant financial stress, primarily due to the rising costs of groceries, housing, and healthcare. About half of all Americans consider grocery costs a 'major' source of stress, with 64% of lowest-income households feeling this acutely. Concerns about the impact of Donald Trump's tariffs are also widespread. The survey highlights that younger Americans are more affected by housing costs and savings, while older adults share similar worries about groceries. Many U.S. adults, particularly younger, Black, and Hispanic individuals, are increasingly using 'buy now, pay later' services like Block, Inc. — Afterpay and Klarna to manage expenses, but lenders are reporting a growing number of customers struggling with repayments. This indicates a broader economic anxiety and potential risks within the consumer credit market.
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