Americans start 2026 financially worse off but remain optimistic

Most Americans say they're starting 2026 in worse financial shape than last year, but new data shows there's reason for optimism as people set fresh financial goals.

A new LendingTree survey finds 60% of Americans say their financial situation is the same or worse now compared to the start of 2025. Nearly one in five report being worse off financially.

Rising prices and inflation made managing money more difficult last year, according to a quarter of the respondents. Half of Americans say they took on some form of debt last year, with credit cards being the most common source.

Groceries and household essentials were the spending categories Americans struggled to manage the most.

But despite these challenges, there's reason for optimism. Nearly half of Americans plan to save more in 2026, while 35% plan to reduce debt. More than half expect their overall financial situation to improve this year.

Experts recommend lowering interest rates, improving credit scores, and aligning spending with priorities to get back on track.

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