If it feels like everyday expenses are becoming harder to manage, you’re not imagining it.
New research from TransUnion’s Q1 2026 Credit Industry Insights Report shows that many Americans are increasingly relying on credit to keep up with rising costs. This is because the rift between financially stable households and financially stressed ones is growing wider.
TransUnion describes today’s economy as “K-shaped,” meaning some consumers are becoming financially stronger while others are facing mounting pressure from debt and affordability challenges.
One of the clearest signs of this shift is the rapid increase in borrowing.
According to the report:
- Credit card originations rose 13% year-over-year to a record 21.9 million in Q4 2025
- Personal loan originations hit an all-time high of 7.6 million
- Total credit card balances climbed to $1.12 trillion in Q1 2026, according to recent market research.
For many Americans, overspending is not the root of the issue. They’re paying for the same everyday necessities they’re used to, but inflation is pushing the price per unit higher.
The report also found that non-prime consumers are carrying significantly heavier debt burdens than they were before the pandemic. Near-prime consumers saw non-mortgage debt-to-income ratios rise from 14.7% to 16.5%, while subprime consumers increased from 12.8% to 14.3%.
That means more income is going toward debt payments, leaving less room for savings, emergencies, or unexpected expenses.
At the same time, many consumers are turning to personal loans to manage cash-flow challenges or consolidate debt into more predictable payments. TransUnion noted that record personal loan growth was driven in part by consumers trying to regain financial stability amid ongoing affordability pressures.
So, what can consumers do?
Financial experts often recommend focusing on:
- Creating a realistic monthly budget
- Prioritizing higher-interest debt
- Building emergency savings gradually
- Looking for safer, more transparent borrowing options when needed
Most importantly, consumers should know they are not alone. The data shows millions of Americans are navigating the same financial pressures right now.
Today’s economy is forcing many households to rethink how they manage debt, credit, and everyday expenses. The key is to find tools and strategies that support long-term financial stability, instead of just short-term survival.
If you want to learn about Kashable’s financial resources? Visit kashable.com
This blog is for general informational purposes only and does not constitute legal, financial, or credit advice.