The American Financial Services Association (AFSA) announced in a newsletter that workers are adapting to higher prices but remain under pressure from inflation and tariffs. This situation underscores the need for sensible credit options to support household stability.
According to new research from PYMNTS Intelligence’s Labor Economy series, even as inflation and tariffs squeeze budgets, many workers are sustaining spending by changing what, where, and how they shop. The report describes consumers as adapting to higher prices rather than retreating entirely but notes that this resilience depends on tight budgeting and selective use of credit to cover gaps when income lags behind essential costs.
PYMNTS Intelligence data show that the average U.S. consumer now carries about $4,880 in credit card balances, compared with roughly $3,861 for workers covered in its Labor Economy sample. Analysts interpret this as a slower, more deliberate pace of credit growth: households are still relying on revolving credit to preserve day-to-day spending power but are attempting to manage balances carefully instead of dramatically expanding their overall debt levels.
An analysis released by a major U.S. bank concludes that tariffs introduced in 2025 have added an estimated 0.3 to 0.5 percentage points to core inflation, with consumers absorbing roughly 50% to 70% of tariff costs while firms and foreign exporters shoulder the remainder. The same research suggests tariff-related business costs could reach about $1.2 trillion in 2025, much of which is expected to filter through into retail prices.
Founded in 1916, AFSA is described as the primary trade association for the U.S. consumer credit industry. Its mission is to promote safe, ethical lending to responsible, informed borrowers while protecting consumers’ access to credit and choice. The association represents a broad range of consumer finance companies and provides its members with policy advocacy, compliance resources, and industry expertise at both the federal and state levels.
