NFCC Reveals Financial Strain is the New Normal for American Households

Lingering at a record-high level, the NFCC Financial Stress Forecast (FSF) indicates a Q3 spike in credit card delinquency.

WASHINGTON, Nov. 19, 2025 /PRNewswire/ -- The National Foundation for Credit Counseling (NFCC) today released its 2025 Q3 Financial Stress Forecast (FSF), which reveals that consumer financial distress has stabilized at a record-high level, pointing to significant and sustained pressure on American households and a projected surge in unsecured debt defaults. The FSF, a proprietary, forward-looking economic indicator that provides real-time insights into consumers' capacity to repay debt, remained steady at 6.6 in both 2025 Q2 and 2025 Q3, marking the highest stress level observed since the data history began in 2018 Q1. This plateau confirms that financial strain is now entrenched, with consumers struggling under sustained debt burdens rather than recovering.

"The NFCC Financial Stress Forecast remains steady at its record-high," said NFCC CEO Mike Croxson. "This is a critical signal that financial strain has become the new normal for U.S. households, and the market must take this bellwether seriously."

Consumer Debt Score Reveals Unprecedented Struggle

The companion index, the NFCC Consumer Debt Score (CDS), provides a quarterly snapshot of NFCC's clients' financial capacity and their ability to repay unsecured debts, reflecting the economic behavior of NFCC's clients in the reporting quarter. The score utilizes proprietary data provided by NFCC member agencies.

The CDS hit its all-time peak of 57 in 2025 Q3, but the most alarming trend is its move above the 50-point threshold. A score above 50 indicates that more consumers are struggling to meet their obligations than those who are managing to meet them. This has become the new reality for American households:

• Since 2024 Q2, the CDS has been consistently above 50 for four straight quarters. Prior to 2024 Q2, this was not the case since the 2019 Q4 score of 49.
• The overall trend has changed dramatically: The CDS showed a period of stability from 2018 Q1 through 2020 Q1 (9 quarters), yet since 2024 Q2, there has been a huge increase in just five quarters.

This surge highlights that the tightening of credit tends that can adversely impact the people who want to affordably repay the debt they owe but can't seem to catch a break.

As a bellwether that acts as an early indicator of future financial metrics, the elevated FSF reading serves as a critical warning for the lending industry. The NFCC FSF predicts that this severe consumer distress will translate directly into higher U.S. commercial bank delinquencies in the quarters ahead, forecasting the U.S. Delinquency Rate will hit 3% in 2025 Q3.

Given the evidence that financial stress is now entrenched, the NFCC urges any consumer experiencing difficulty managing their unsecured debt to seek help immediately. The NFCC network provides access to confidential, non-profit financial and credit counseling from certified professionals who can help review debt repayment challenges, create actionable budgets, and outline personalized paths to financial recovery. Consumers can connect with a certified NFCC counselor by calling 800-388-2227 or visiting www.nfcc.org.

About the Consumer Debt Score and Financial Stress Forecast

The NFCC Consumer Debt Score (CDS) is reflective of the economic behavior of NFCC's clients in the reporting quarter. The Score offers a quarterly snapshot of NFCC's clients' financial capacity and their ability to repay unsecured debts. The NFCC Consumer Debt Score utilizes proprietary data provided by member agencies of the NFCC.

The NFCC Financial Stress Forecast (FSF) is a proprietary, forward-looking economic indicator that serves as a vital bellwether for the U.S. consumer financial health. The FSF measures the overall financial stress of the American consumer, providing valuable insights into their capacity to repay unsecured debt. The NFCC Financial Stress Forecast utilizes real-time, on-the-ground data from NFCC member agencies to predict future trends in credit card delinquency.

About NFCC

Founded in 1951, the National Foundation for Credit Counseling (NFCC) is the oldest nonprofit dedicated to improving people's financial well-being. With a nationwide network of NFCC Certified Credit Counselors serving 50 states and all U.S. territories, NFCC nonprofit counselors are financial advocates, empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, loans, housing decisions, and overall money management. For expert guidance and advice, call 800-388-2227 or visit www.nfcc.org.

SOURCE National Foundation For Credit Counseling