The news: The cost of living is the top economic concern for 76% of US consumers, and 70% are pessimistic about their ability to cover their expenses, per a recent CNN poll conducted by SSRS.

Zoom in: As they feel increasingly squeezed by inflation, most US consumers are changing their spending habits and taking on more work.

They’re also taking on more credit card debt to cover everyday expenses, per The New York Times.This growing dependence on debt is starting to show strain, with higher delinquency rates; declining credit scores; and increased use of less visible borrowing like buy now, pay later (BNPL).

Why this matters: Increased reliance on credit means higher balances, more card usage, and stronger interest income as customers revolve debt instead of paying it off. And demand for credit products—credit cards, personal loans, BNPL—rises when consumers are short on cash.

But the bigger issue is risk. As households stretch to cover essentials, banks face higher delinquencies, declining credit scores, and a greater chance of charge-offs if economic conditions worsen. Some of this risk is harder to see, as more borrowing is happening through products like BNPL, which aren’t always fully captured in traditional credit data.

Longer term, this environment can change customer relationships. Most consumers feel well served by banks during periods of economic stability but underserved in more difficult times, according to Jack Henry & Associates. To boost customer satisfaction and loyalty, it’s more important than ever to proactively address customers’ financial stressors and needs with sound advice and helpful products and services.

Recommendations for banks: Embed financial wellness tools in the core app experience, making cash flow insights, alerts, and bill tracking visible alongside everyday transactions. Banks should also shift from reactive to proactive support by using data to detect early signs of financial strain and intervene with timely reminders, flexible payment options, or short-term solutions.

In addition, banks should build clear, in-app support for hardship moments—like job loss or unexpected expenses—to reinforce trust when customers need it most.  This might include emergency credit access, payment flexibility options, and the option to connect with human experts for trusted advice. 

Consumers still turn to other sources of financial advice—such as friends and family and financial websites—more than their financial institutions. Proactive tips can help banks become a go-to source for all things financial.

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