Nearly seven in ten middle-income Americans (68%) say they are having trouble keeping pace with the cost of living, according to a new report from financial services firm Primerica. This economic pressure is prompting many families to draw down savings or accumulate credit card debt to cover basic expenses.
"Many of them are in a deficit position, they’ve either used savings or credit cards to fill the gap,” said Glenn J. Williams, CEO of Primerica, in an interview with FOX Business.
Debt on the Rise Amid Economic Uncertainty
The data underscores a growing financial vulnerability among households earning between $30,000 and $100,000 annually—a group often considered the economic backbone of America. Inflationary pressures, while slowing from peak highs in 2022, continue to affect food, housing, and healthcare costs, forcing difficult choices for many families.
In particular, reliance on credit cards is becoming a coping strategy. U.S. credit card debt surpassed $1 trillion in 2023, according to the Federal Reserve Bank of New York, marking a record high. With interest rates at elevated levels, this trend threatens to further erode the financial health of middle-income earners.
Implications for Retailers and the Omnichannel Economy
For retailers—particularly those like Walmart that serve a broad swath of middle-income shoppers—these consumer trends carry important implications. Shoppers may prioritize value-based purchasing, seek out discounted private-label brands, or shift spending toward essential goods. Understanding and responding to these evolving behaviors is critical to thriving in an omnichannel retail environment.
This also puts a spotlight on retail loyalty programs, digital coupons, and price transparency, which are increasingly important tools for brands trying to retain budget-conscious customers across both physical and digital channels.
Financial Education and Tools in Focus
To help address these challenges, Primerica and other financial institutions are urging a focus on financial literacy, budgeting tools, and debt management resources. These tools are crucial to help families build financial resilience in uncertain times.
As the economic pressures on middle-income Americans continue, businesses, policymakers, and community leaders alike will need to consider innovative solutions to support household stability—and by extension, economic momentum.
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Staff Report
Dan Craft
Staff Report
