31% Prioritize Debt and Emergency Savings
A new Bankrate survey reveals 31% of Americans are prioritizing both paying down credit card debt and building emergency savings in 2026, even as most report their actual savings haven't increased. The dual focus reflects ongoing anxiety around inflation and financial shocks, despite a key inflation metric dropping to a five-year low.
- While 44% of Americans report having more emergency savings than credit card debt, 29% say they have more credit card debt. - Millennials and Gen Xers are the most likely to be carrying more credit card debt than emergency savings, at 35% and 33% respectively. - Total U.S. credit card debt climbed to $1.28 trillion by the end of 2025, with the average balance per person reaching $6,523. - A key inflation metric, the Consumer Price Index, dropped to a 2.4% annual rate in January 2026, the lowest since March 2021. - Despite cooling inflation, consumer prices remain roughly 25% higher than they were five years ago, contributing to financial strain. - Emergency preparedness remains a concern, with nearly a quarter of Americans having no emergency savings at all. - Unexpected expenses are a primary driver of debt, with 41% of credit card debtors citing emergencies like medical bills or car repairs as the main cause. - Looking ahead, 50% of Americans with financial goals for 2026 worry that the rising cost of living will prevent them from achieving those goals.
