Despite current levels, slight easing is projected in the third quarter.
WASHINGTON, Aug. 21, 2025 /PRNewswire-PRWeb/ -- The National Foundation for Credit Counseling (NFCC) today released its latest Financial Stress Forecast (FSF), reporting that consumer financial stress climbed sharply in the second quarter of 2025, reaching 6.6 on a 10-point scale. This marks the most elevated reading since 2019, reflecting a financial environment where debt dominates daily decisions, sacrifices are routine, and saving feels increasingly out of reach.
Since the low of 3.2 in Q2 2021, the FSF has more than doubled, signaling a dramatic shift from manageable debt burdens to persistent financial pressure. Over just the past five quarters, the FSF has risen 28%, underscoring mounting repayment challenges for U.S. consumers.
Looking ahead, the NFCC forecasts a slight easing of financial stress in the third quarter of 2025, with the FSF projected to fall to 6.2. While this dip offers some relief, stress levels remain among the highest seen in recent years and continue to signal financial instability for households nationwide.
"The latest forecast confirms that debt is no longer a background concern but a daily struggle for many families," said Mike Croxson, CEO of NFCC. "Even with a modest projected easing in Q3, stress levels are still elevated. Consumers receiving counseling from our members are making hard choices between paying down debt and covering essentials like housing, food, and healthcare. This strain also foreshadows potential increases in delinquencies and defaults in the months ahead."
Key Highlights from the 2Q2025 NFCC Financial Stress Forecast:
- Highest Stress in Years: FSF reached 6.6 in Q2, the most elevated reading since 2019.
- Sharp Rise from Pandemic Low: Stress levels have more than doubled since 2021Q2's 3.2 low.
- Continued Upward Trend: A 28% increase over the last five quarters highlights persistent strain.
- Forecast for Q3 2025: Stress is projected to ease slightly to 6.2, though levels remain historically high.
The NFCC Financial Stress Forecast serves as a bellwether of U.S. household financial health and a predictor of future debt repayment challenges. Rising stress levels are strongly correlated with higher delinquency and charge-off rates reported by U.S. commercial banks.
"The implications go beyond individual households," added Croxson. "Persistent financial stress often ripples through the economy, leading to broader instability if left unaddressed. That's why we encourage consumers to take proactive steps including budgeting, exploring debt management options, or connecting with a nonprofit NFCC Certified Credit Counselor for personalized support."
Consumers seeking help can connect with an NFCC Certified Credit Counselor by visiting http://www.nfcc.org.
Media Contact
Bruce McClary, NFCC, 202-677-4301, [email protected], www.nfcc.org
SOURCE NFCC
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