Rising fuel prices and everyday expenses are reshaping household finances, pushing more consumers toward short-term borrowing and payment relief options.

In Portland, Mich., a growing credit union is getting a close look at how higher prices are changing the financial lives of its members.

PFCU, which has $859 million in assets and serves more than 57,000 members, reported nearly $2 million in earnings in the first quarter of 2026 but also donated $173,322 to 159 organizations in the community last year.

But behind those numbers, executives say, is a membership base increasingly squeezed by the cost of daily life.

“Rising gas prices and the higher cost of everyday goods are putting noticeable pressure on many of our members’ monthly budgets,” Michele Makley, the credit union’s president and chief executive, told Tyfone. “We’re seeing less discretionary income as more dollars go toward essentials like fuel, groceries, and utilities, which in turn affects cash flow and savings behavior.”

That shift is showing up in how members borrow and spend. Makley said borrowing started the year slowly but has begun to pick up, particularly in home equity loans, which have become an important option for households looking to manage expenses.

“Borrowing was slower in the first couple of months, but we have recently started to see an uptick,” she told Tyfone, adding that “we are seeing more members living paycheck to paycheck.”

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The pressure is not unique to PFCU. New data from Navy Federal Credit Union underscores how sharply transportation costs have risen. Its Cost of Car Ownership Index climbed 4.7% in March and 5.5% over the past year, with gasoline prices surging 21.2% in a single month. Since January 2020, the index has increased nearly 48%, reflecting a sustained rise in expenses that has outpaced broader inflation.

For many households, those increases leave little room for error. Makley said some members are relying more on short-term credit or hesitating before taking on new financial commitments.

In response, PFCU has focused on outreach and education. The credit union offers budgeting tools and financial counseling, and staff members monitor accounts for early signs of trouble.

“We proactively reach out when early signs of delinquency appear, so we can address issues before they escalate,” Makley told Tyfone. “We have certified financial counselors available to meet with members and review their finances.”

The institution has also leaned on a familiar tool: payment flexibility. Its Skip-A-Pay program allows eligible borrowers to defer a loan payment during designated periods, easing short-term pressure on cash flow.

“The Skip-A-Pay option has proven to be very popular among our membership, particularly as living expenses continue to rise,” Makley said. “Members appreciate the flexibility it provides.”

For credit unions like PFCU, the challenge is balancing growth with support. As expenses rise and budgets tighten, the demand for both credit and guidance is likely to persist, keeping smaller institutions on the front lines of a broader economic strain.

“Rising gas prices and the higher cost of everyday goods are putting noticeable pressure on many of our members’ monthly budgets.”

– Michele Makley
President & CEO
PFCU