As 2026 approaches, experts are warning people to think twice before taking out new loans or using more credit. This is because inflation—when the prices of things like food, gas, and rent go up—is still very high. At the same time, interest rates, which are the extra amounts you pay when borrowing money, are also high. That means it costs more than ever to use credit cards or take out loans. Financial advisors say borrowing under these conditions could lead to long-term stress and regret, since people may end up paying much more than they expected just to cover basic expenses. Instead of borrowing, it's smarter to focus on budgeting and finding ways to save until the economy stabilizes.

In 2025, financial experts are urging Americans to be careful with their money, especially those close to retirement. With inflation rising again and the Federal Reserve choosing not to lower interest rates further, the economy is uncertain and unpredictable. Experts warn that emotional reactions to market changes—like pulling money out of investments too quickly—can damage long-term financial goals. Instead, people should stick to their plans and stay calm. Managing debt is also more important than ever, as the average American owes over $7,000. Reducing debt and avoiding rash financial decisions are key to staying financially secure during these uncertain times.