INDIANAPOLIS — If you’re feeling financially stressed at the start of 2023, you’re not alone.
Inflation and high prices are causing an increasing number of Americans to feel financial burnout.
According to KeyBank’s 2023 Financial Mobility Survey, 55% of people reported financial challenges over the last year. That’s up from 37% in 2021.
The increase coincides with increasing credit card debt across the nation. According to the Federal Reserve, borrowing increased by $28 billion in November.
The biggest worry, according to the survey, is sticking to a budget as prices continue to increase. According to financial advisors, setting a budget and sticking to it can ease financial stress. However, that’s been a bigger challenge since inflation-related price increases continued over the last year.
If you already have a budget, it might be time to write a new one that you can stick to in the current climate. Looking at your food spending is a good place to start. Eating out less and reexamining your grocery trips could save you money from week to week. You can also consider unnecessary expenses like overlapping streaming services. Planning your trips around town to be more efficient could also save you on the expensive gas in your tank.
It could also be worth calling your credit card company to ask for a lower interest rate. Many are surprised at how often the credit card companies will work with customers on that.
If you need help getting your debt and finances under control, the National Foundation for Credit Counseling can connect you with a non-profit credit counselor to assess your situation and help develop an action plan.