In 2025, nearly half of Americans saw their finances worsen due to unexpected expenses, with the top regrets being not saving enough, impulse spending, and high-interest credit card debt. Despite this, 45% believe they can turn things around in 2026.

Challenges faced by Americans in 2025 included rising tariffs causing economic uncertainty and an effective tariff rate of 11.2% on imported goods. Inflation hovered around 3% for most of the year, and interest rates on personal loans, credit cards, and mortgages remained high despite modest Fed cuts.

The Credit Karma survey found 20% of Americans fell behind on bills like mortgages and credit cards, while 19% struggled to afford groceries. 67% blamed rising costs and economic forces for their financial difficulties in 2025.

Poor spending habits, like “doom spending” and carrying credit card balances, are contributing to financial strain. To improve finances in 2026, consider setting a budget, removing recurring expenses from credit cards, cancelling unnecessary subscriptions, and hunting for deals to save on regular expenses.

Setting financial goals for 2026, such as paying off high-interest debt, boosting emergency savings, saving more for retirement, and giving to charity, can help improve your financial outlook for the new year. Focus on making positive changes to reach your financial goals and reduce financial stress.

Read more at Yahoo Finance: Nearly half of Americans say they ended 2025 worse off. Here are their top 3 money mistakes and how to fix them in 2026