More Americans Say They’re Falling Behind – And the Pressure Is Building

USA Today, the Hill, The Daily Beast contributed to this report.

Ask Americans how they’re doing financially right now, and a lot of them don’t hesitate: not great.

A new Gallup poll finds 55% say their personal finances are getting worse – one of the bleakest readings in more than two decades. That’s up from 47% just last year, and it marks the fifth straight year people have felt things are sliding, not improving. The last time sentiment looked this grim? The depths of the Great Recession.

The sour mood is settling in at a tricky moment. The war in Iran is dragging on, prices are climbing again in key areas, and midterm elections are looming. That combination is putting fresh pressure on Washington, especially President Donald Trump, who has insisted the economy is thriving under his leadership. Polling suggests many Americans aren’t convinced.

So what’s driving the frustration?

It’s not just one thing. It’s a pileup.

Start with prices. Inflation isn’t as extreme as it was in 2022, but it hasn’t fully cooled either. Everyday essentials – groceries, utilities, transportation – are still eating up more of people’s paychecks than they used to. Then there’s gas. Prices have surged again, climbing past $4 a gallon nationally as tensions in the Middle East disrupt global oil flows.

For people like Kerigan Rosado in Michigan, that’s not an abstract number. It’s a budget problem. Filling up her SUV now costs around $50, and possibly more soon. The result: fewer dinners out, fewer extras, more cutting back.

“It hurts,” she says. “We’ve stopped spending in a lot of other areas.”

That kind of trade-off is becoming common. Four in 10 Americans say they’re worried about paying monthly bills. More are struggling just to keep up with minimum credit card payments.

And then there’s the broader “everything is expensive” feeling. Nearly a third of Americans say the cost of living is their biggest financial problem. Rent, childcare, college – all stacking up.

Housing, in particular, has become a major strain. Half of renters are now considered “cost-burdened,” meaning they spend more than 30% of their income just keeping a roof over their heads. Buying a home isn’t much easier. Prices remain high, mortgage rates aren’t exactly friendly, and many homeowners are stuck in place after locking in cheaper loans years ago.

Even those who own their homes are feeling it. Property taxes are up. Insurance costs have surged. Some are being pushed to the brink – housing counselors say they’re seeing homeowners turn to food pantries just to get by.

Energy costs aren’t helping. Gas prices have jumped sharply since the war began, and analysts warn there could be more pain ahead if supply disruptions continue. That ripple effect doesn’t stop at the pump either – higher fuel costs tend to show up in everything from shipping to groceries.

Healthcare is another major source of anxiety. Six in 10 Americans worry they couldn’t cover the cost of a serious illness or accident. Even routine care is a concern for many. Insurance premiums keep rising, often faster than wages.

For people like David Soyka, that fear shapes big life decisions. He’s nearing retirement age but keeps working largely for the health coverage. One major medical bill without insurance could wipe out years of savings.

And for millions who rely on Affordable Care Act plans, costs have already jumped after enhanced subsidies expired. Some have dropped coverage altogether.

Put it all together – higher everyday costs, expensive housing, rising gas prices, healthcare worries – and it’s easy to see why confidence is shaky.

There are some buffers. Americans are still spending a smaller share of their income on gas than during past crises. And not every household is feeling the squeeze equally; higher earners have held up better. But those cushions aren’t infinite.

Economists warn the bigger risk is what happens if rising energy costs start pushing up other essentials even more. That’s when things could tighten fast.

For now, the mood is clear. People aren’t just uneasy – they’re adjusting. Cutting back, delaying plans, sticking to the basics.

And increasingly, they’re wondering how long that can last.