Hassett brags that credit card spending is ‘through the roof’ — as delinquencies climb and farm bankruptcies jump 46%

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Depending on how you look at it, Americans’ record-high spending could be considered good or bad. For Kevin Hassett, the White House’s director of the National Economic Council, it’s cause for celebration.

“The consumer is really, really firing on all cylinders, just like the corporate sector,” Hassett told Fox Business Network host Maria Bartiromo on Mornings with Maria (1).

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“Credit card spending is through the roof, [they’re] spending more on gasoline … but they’re spending more on everything else, too,” he added.

The blowback from Hassett’s interview came quickly, from social media users to political commentators.

One X user wrote, “Americans are spending more on gas because gas costs $4.54 a gallon. They’re putting the rest on credit cards because their savings are gone. Kevin Hassett just accidentally described a debt crisis as a boom (2).” Jon Favreau from Pod Save America noted that this messaging was so bad that Hassett may as well be “secretly working for the Democrats (3).”

So, is credit card spending really a sign of American prosperity and an improving jobs outlook, as Hassett claims, or is he way off the mark? Here’s a closer look at the numbers.

Where is that money coming from?

Hassett trumpeted the consumer expenditures as a direct result of President Donald Trump’s policies, which he said have given Americans “so much more money in their pockets (1).”

In particular, Hassett called out tax deductions as helping people save more. In his interview with Bartiromo, he cited the No Tax on Tips policy, which allows for up to a $25,000 deduction in tipped income, and the No Tax on Social Security, which is a new tax break on Social Security income helping millions of older Americans. Hassett claimed the average benefit for both breaks, which expire in 2028, was worth around $7,000 each.

In an interview with CNBC’s Sara Eisen, U.S. Treasury Secretary Scott Bessent backed up Hassett’s narrative, saying that 45% of Americans who filed their taxes this year made use of one of Trump’s four “signature policies” in the working families tax cuts (4).

And on the surface, these policies worked. According to CNBC, the average refund was $3,275 as of April 17, up around 11.3% from the same time last year (5).

Meanwhile, Hassett added in the interview with Fox that unemployment is holding steady — which is also true. In April, it was at 4.3%, which is unchanged from March, according to U.S. Bureau of Labor Statistics data (6).

“Nobody’s really losing their job, nobody’s being fired,” Hassett said.

Read More: Here’s the average income of Americans by age in 2026. Are you falling behind?

Spending is not the same thing as paying off debt

Despite the optimism, Americans don’t seem to be making any major dents in their debt. According to the Quarterly Report on Household Debt and Credit released by the Federal Reserve Bank of New York (7), the first quarter of 2026 saw the following developments:

• Total household debt stood at $18.8 trillion, up $18 billion from the fourth quarter of 2026.

• Mortgage balances reached $13.19 trillion, up $21 billion.

• HELOC balances hit $446 billion, up $12 billion.

• Credit card balances declined to $1.25 trillion, down $25 billion.

• Auto loan balances rose to $1.69 trillion, up $18 billion.

• Student loan balances stood at $1.66 trillion, down $6 billion.

The Fed’s credit report shows a mixed bag, with no huge shifts in debt. While credit card and student loan balances went down, mortgage and auto loan balances rose. With total household debt staying essentially the same — up $18 billion, but that’s far less than the increase of $191 billion in the fourth quarter of 2025 (8) — it could be argued that debt on the whole is flattening out in early 2026.

What’s perhaps most noteworthy is that credit card balances did in fact go down, which seems to contradict Hassett’s gleeful statement that it’s “through the roof.” Although it’s worth noting that this “seasonal decline” (9) is not unusual at the beginning of the year, as consumers are known to use their tax refunds to pay down some of their spending from the previous December.

Looking ahead, however, a big concern is how soaring inflation is going to impact debt levels, and the April numbers for the Consumer Price Index (CPI), which is the major benchmark for inflation, are looking grim at the moment.

Overall, it rose to 3.8% in April, up 0.64% since March (10). But the more alarming numbers are found in the Energy CPI, which was a whopping 17.87% in April, meaning that consumers are feeling the impact of inflation at the gas pumps. In fact, since the war with Iran began in late February, gas prices have risen by around 50% (11).

The point is that the rising costs of living might force many households to start leaning harder on credit cards to pay for essentials like gas, groceries and housing — and that can become dangerous when high interest rates come into play. Credit card interest compounds quickly, which means even small balances can snowball over time and eat away at your monthly cash flow.

Where to start paying down high-interest debts

When high-interest debt starts piling up, paying it down aggressively can be one of the smartest financial moves you make.

Consolidating all your debts into a personal loan through Credible is an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you’ll have one predictable payment to manage each month.

Through Credible’s online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you’re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.

Refinance your mortgage at a better rate

Out of that $18.8 trillion in household debt, 4.8% was in some stage of delinquency in early 2026 (9). That’s about $900 billion in delinquent consumer loans. Transitions into serious delinquencies mostly held steady, but they did accelerate slightly for mortgages.

For homeowners feeling squeezed by monthly payments, refinancing could offer some breathing room. Securing a lower mortgage rate can reduce monthly housing costs, free up cash for other expenses and make it easier to stay current on payments during periods of financial strain.

Even a modest reduction in your rate can add up to significant savings over time. Lower monthly payments can also create more flexibility in your budget — particularly important for households already juggling high-interest debt or rising living expenses.

Platforms like Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders — all from the comfort of your home.

All you have to do is answer some basic questions about your property and your finances (including your zip code and annual income), and MRC will compile a list of the best offers from lenders near you.

With the help of MRC, you can get connected with custom offers today and shop with confidence.

A mixed employment situation

According to the latest Bureau of Labor Statistics data (6), there was a net gain of 115,000 jobs in April in healthcare, transportation, warehousing and retail trade.

However, more people were working part-time because they couldn’t find full-time work or their hours were reduced. The number of those part-time workers grew to nearly 5 million in April, an increase of 445,000 over March (12).

Meanwhile, as Business Insider reports, more than 100 companies — including Amazon, Citi, Nike and Verizon — have announced plans to lay off staff globally in 2026 (13). Many firms cite AI as a reason to reduce their workforces (although overhiring during the pandemic may be a larger factor).

The federal workforce continues to shrink (6). Still, Hassett is hopeful about jobs in manufacturing, saying that foreign companies are building factories in the U.S., thanks to Trump.

He points to Novartis, which has announced (14) a $23-billion plan to construct a pharmaceutical manufacturing plant in North Carolina.

“Anybody who works in a factory is going to see a huge increase in the demand for their labor as the factories get set up,” Hassett said, claiming that 54,000 jobs have recently been created for construction workers.

Whether better news will shift the needle on America’s consumer debt remains to be seen, but as the New York Times reported, even consumers who have six-figure incomes say their credit card balances are up because they can’t manage monthly expenses (15).

Track your spending

One reason debt can spiral so quickly is that many households simply don’t know where all their money is going. Small recurring charges, dining out, subscriptions,and impulse purchases can quietly chip away at a paycheck without people realizing the full impact — until balances start growing.

Tracking your spending can help bring those habits into focus. Seeing exactly where your money goes each month can make it easier to spot unnecessary expenses, set realistic savings goals and avoid relying on credit cards to bridge the gap between paychecks.

For example, Monarch Money’s expense tracking system makes managing your finances easier than ever. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending.

All you have to do is link your credit card accounts and then you can monitor your payment progress in real-time and set specific goals to get out of credit card debt faster. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs for couples or helping your child get used to big-picture financial planning as parents.

For a limited time, you can get 50% off your first year with the code WISE50.

Build better financial habits

Paying off debt can feel like crossing a finish line, but maintaining financial stability afterward is perhaps just as important. Once you’ve eliminated high-interest balances, building healthy money habits can help prevent future setbacks.

Many experts recommend using that momentum to build savings and begin investing consistently — even if the amounts start small. Over time, those steady contributions can add up.

For instance, investing $20 each week for 30 years can help you save over $179,000, assuming it compounds at 10% annually (16).

If those kinds of returns are too tempting to pass up, consider using platforms like Acorns that allow you to turn your spare change from everyday purchases into an investment opportunity.

Signing up for Acorns takes just minutes, and once you’ve linked your cards, Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.

For instance, if you buy a donut for $3.25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. So a $3.25 purchase automatically becomes a 75-cent investment in your future.

Sign up today and get a $20 bonus investment.

— With files from Laura Boast

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

@FoxBusiness (1); @allenanalysis (2); @podsaveamerica (3); CNBC (4),(5); U.S. Bureau of Labor Statistics (6); Federal Reserve Bank of New York (7),(8),(9); U.S. Congress Joint Economic Committee (10); PBS (11); Reuters (12); Business Insider (13); Novartis (14); The New York Times (15); Acorns (16)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.