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I believe that we are facing the most consequential midterm election since 1994, when Newt Gingrich and the Republican Party ended 40 years of Democrat majority in the House of Representatives. The result will be either more of the same or a seriously divided government unseen in decades.
Regardless of the outcome, the current cost of living will survive the election with sub $4.00 gas considered “on sale”. As I write this in early September, I am frustrated that I did not fill up yesterday before it jumped 20 cents today to $4.19. It would be nice if we could be notified of gas prices going up. Like the post office does when the price of a stamp increases.
Higher prices will hit nearly every product or service we use as the historically higher cost of diesel fuel weaves its way through our economy. Every product we use in some way moves via truck or rail using diesel. Just in time for harvest season, higher diesel prices are compounding the financial challenges of farmers already dealing with tariff induced commodity price fluctuations.
Since the Iran conflict started diesel price has increased 56% hitting the highest price in history. Diesel fuel touches almost everything we consume. Up to now businesses have absorbed much of this added cost. But many have reached a point where they must push some of this increase to consumers.
According to the Energy Information Administration, the US exported an average of 1.77 million barrels of diesel a day as of August 31. Frustrating as this is, it is 31% higher than the same period last year, increasing oil company profits with no plans on the part of the administration to stop or lower that number.
With all this uplifting news you are probably asking, ‘What can we do about it.”
Besides the obvious of buying cheaper products, shopping sales, using less of an item or service, there is not much more we can do, other than vote. But will that really matter? Probably not.
As family budgets are strained, managing credit usage becomes more of a priority. In times of financial strain, it becomes easy to utilize credit for everyday expenses.
According to Axis-Intelligence, Americans owe $1.252 trillion on their credit cards as of first quarter 2026. At 21.00% average APR and $253 billion in annual interest and fees, this is the most expensive consumer debt cycle in modern US history.
According to the Federal Reserve, credit card delinquencies stand at 2.85% as of June 30, 2026, which is not historically high. More concerning is that the U.S. auto loan serious delinquency rate (90+ days) reached 5.5% as of June 30, 2026, surpassing the Great Recession peak and the most vulnerable segment of consumer credit.
Most delinquent borrowers were considered “subprime” when they financed their vehicle. As such, their interest rate is higher than that of a “Prime” borrower. In some cases, the rate can be double what a prime borrower would pay, to compensate the lender for the added risk of lending to a less than prime borrower. And concentrating risk into lower credit score borrowers where most delinquencies occur.
Unfortunately, some people cannot avoid the result of being unable to fulfill their financial obligations. Repossessions and bankruptcy are the result, after which it is significantly harder to earn back a prime credit rating.
There are things you can do to manage through our current economic situation and maintain or increase your credit score, which is the most important financial indicator a person has.
The easiest – but in some cases, the hardest - thing you can do is to make all your payments on or before they are due. If possible, pay more than the minimum payment on credit cards. One late payment can lower your score by 20 -30 points.
Try to keep the balances on your credit card at or below 30% of your available credit line. This is your utilization rate. As your utilization rate increases toward the maximum available, your credit score will decrease. You can offset some of this negative impact by paying significantly more than the minimum payment.
Regardless of how challenging making payments can become, never, ever, ever open a new credit card or use a credit card to make payments on another credit card. And if you are falling behind in auto loan payments, contact your lender and make them aware that you want to honor your obligation to repay them, and request payment modifications or other arrangements to repay.
If you do not have a credit score or credit card you need to get one. In today’s economic climate a secured credit card is your easiest option. To open a secured credit card account you will need to have $300 that you deposit with the credit card issuer. They issue you a VISA or Mastercard with $300 limit. Use it to buy high priced gasoline to generate a balance and a bill. When the bill comes, pay it in full, and continue to use the card every month. In 2-3 months, you will have a credit score.
Families’ budgets will be strained in the coming months. Managing expenses and credit usage will be critical to avoid sleepless nights and ensure financial survival.
