Rising Costs Add Pressure as Fewer Consumers Meet Financial Goals

Only one-third of Americans saw the financial progress they expected, according to a new report, with many relying on debt to stay afloat.

There is a disconnect between consumers’ financial expectations and their actual economic experience, according to a survey from Achieve, a digital personal finance company. In Achieve’s 2024 survey, 57% of respondents said they anticipated their finances would improve over the following year. However, by April 2025, only 32% of households reported experiencing those gains.

Fewer Consumers Saw Expected Financial Improvement

The data point to increasing strain on household budgets, as inflation, elevated interest rates and newly imposed tariffs pressure consumers. The survey found that 33% of consumers reported a decline in their financial situation over the past year, a sharp rise from the 10% who expected a downturn, according to the company’s spring 2024 survey. As a result, more individuals are turning to debt to cover basic expenses.

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The survey offers a qualitative perspective on consumer debt trends, complementing data from the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit. Survey results underscore how persistent economic challenges are making it harder for many households to regain financial stability. The findings reveal how households are managing debt, as 25% of consumers reported taking on more in the past three months, consistent with this year’s first quarter.

Debt is increasingly being used to cover basic needs, with 58% of respondents relying on credit cards for essential expenses. Among that group, 40% have carried this debt for more than six months, indicating long-term reliance.

Bill Payment Trends Reflect Continued Strain

Signs of financial strain are also becoming more apparent: 37% of respondents say they’re struggling to pay debts on time, up slightly from 36% last quarter. Just 59% report paying all their bills on time, a drop from 65% in Q1, and 61% in the inaugural Q2 2024 survey.

In Q2 2025, missed payment risk on student loans increased to 35% (up from 32% last quarter), while even secured debts such as auto loans (14%) and mortgages (10%) are at greater risk of a late or missed payment, the survey found.

Among respondents whose debt increased over the past three months, one in three (33%) pointed to difficulty making ends meet without borrowing, 28% cited employment and income challenges, and 21% acknowledged falling victim to general overspending. Health care costs and other medical issues remain a key challenge, with 16% of respondents attributing their debt to these.

The findings are based on a survey of 2,000 U.S. adults with at least one active form of consumer debt.

Citing Strategic Shift, SEC Withdraws 14 Biden-Era Proposals

According to the notice, the proposals cover areas such as cybersecurity, ESG disclosures and shareholder rights. 

The Securities and Exchange Commission has withdrawn 14 proposed rules and amendments issued between March 2022 and November 2023, under former President Joe Biden, continuing the agency’s regulatory shift under leadership appointed by President Donald Trump. 

According to a June 12 notice, the proposals covered areas such as cybersecurity, ESG disclosures and shareholder rights. The SEC stated it would release new proposed rules if the commission pursues future regulatory action in any of the areas.

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The commission also appointed Brian Daly as director of the SEC’s Division of Investment Management, effective July 8. He will replace Acting Director Natasha Vij Greiner, who will depart the SEC on July 4.

One of the rescinded rules was a 2022 proposal that would have required investment advisers, investment companies and other businesses, to provide disclosures regarding their investment practices regarding environmental, social and governance factors.

The SEC did not cite specific reasons for each withdrawal; it emphasized a broader reevaluation of its regulatory approach.

Other withdrawals included:

  • Safeguarding client assets: A proposed revamp of custody rules for investment advisers;
  • Cybersecurity: The rule would have required firms, investment advisers and broker/dealers to enhance cybersecurity defenses and report major incidents;
  • Best execution and order competition: The proposals would have redefined how brokers ensure retail investors get the best deal on trades and how those trades are routed; and
  • Outsourcing by investment advisers: The rule would have prohibited advisers from outsourcing certain services or functions without “conducting due diligence.”

“We are withdrawing these proposals because, as noted above, we no longer intend to issue final rules with respect to these proposals,” the SEC stated in the notice. “If the commission decides to pursue future regulatory action in any of these areas, it will do so by publishing a new proposed rule or other issuance consistent with the requirements of the Administrative Procedure Act, as applicable.”

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