Rising Financial Struggles and a Drop in Budgeting Signal Potential Economic Warning
FORT LAUDERDALE, FL – July 18, 2025 /Noticias Newswire/ – The financial strain on American households continues to mount, with 69% of adults now reporting they’re living paycheck to paycheck—an all-time high since Debt.com began tracking the data—according to its latest annual budgeting survey of 1,000 U.S. adults . This sharp rise reflects a significant jump from 60% in the previous year.
Despite over 86% of Americans maintaining a monthly budget, this year marks the first decline in budgeting rates since 2018 . Experts warn this could signal early warning signs of a potential downturn.
“Budgeting remains vital—but it’s clear it’s no longer enough,” says Don Silvestri, President of Debt.com.
Here’s the year-over-year breakdown:
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2022: 50%
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2023: 50%
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2024: 60%
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2025: 69%
For the first time since 2018, the percentage of Americans actively using a budget has declined—a trend that financial experts consider a serious warning sign.
“This is perhaps the most obvious indication yet that while budgeting remains critical, it’s no longer sufficient to counteract today’s economic pressures,” said Don Silvestri. “The drop in budgeting participation is alarming. It suggests that what we’re witnessing may not just be financial strain—but the early indicators of a larger economic downturn.”
Just a year ago, 90% of U.S. adults said they followed a monthly budget. In 2025, that number has dipped to 86%. While still relatively high, the decline marks the end of a consistent upward trend seen over recent years.
“The individuals who have stopped budgeting are potentially in the most danger,” Silvestri added. “They’re the ones most vulnerable to inflation shocks and most likely to accumulate more debt as everyday costs continue to climb.”
Gender Gaps in Budgeting and Struggles
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72% of women report living paycheck to paycheck, compared to 65% of men.
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The top reason women cite for not budgeting is low income at 41%, compared to 31% of men.
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Men are twice as likely to say budgeting takes too much time, 24% vs. 12%.
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51% of men say they’ve stayed out of debt without a budget, compared to 45% of women.
A Call for Stronger Financial Tools
As financial pressures mount, Debt.com urges action — not just from consumers, but from policymakers and employers alike.
“Americans are doing their part,” Silvestri emphasized. “They’re budgeting. They’re trying. But the numbers show that’s no longer enough. We need to equip people with stronger tools and real support systems — because if fewer Americans are budgeting, and more are falling behind, we may be heading toward more than just personal financial crises.”
About Debt.com: Debt.com is a trusted source for consumers seeking help with credit card debt, student loans, tax debt, credit repair, and more. By connecting people with vetted financial professionals and educational tools, Debt.com empowers Americans to make smart money decisions and regain control of their finances.
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