Consumer confidence in where the economy is headed hit a 12-year low this week, according to the Conference Board. A fresh reading out of University of Michigan today also showed a deterioration in overall sentiment with a 12% drop from February, marking the third month of decline.

Despite Americans’ concerns about the economy, they seem to be spending more. Roughly one in five Americans are shopping out of fear of future price hikes, which some experts refer to as doom spending.

Doom spending means making impulsive purchases largely driven out of fear over what the future may bring. In some cases, it’s a kind of retail therapy, but it can also be a strategy to get ahead of economic uncertainty.

“People are worried for a number of reasons,” Wendy De La Rosa, a Wharton professor who studies consumer behavior, told CNBC. “We as humans hate uncertainty and are averse to volatility. And so when there’s whiplash happening at a national level as to what tariffs are happening with which country and how it’s going to affect our domestic industries, that makes people really nervous.”

Consumer spending came in softer than expected in last month, but overall sales continued to grow steadily amid mounting fears of an economic slowdown and inflation.

It’s not just consumers who are concerned. Major companies, such as Walmart, Delta, and American Airlines, along with the Federal Reserve and Wall Street are all signaling uncertainty. The S&P 500 dropped 10% from record highs in February, suggesting investor fears over an economic slowdown.

Watch the video above to learn why Americans are spending more even in tough times and what this pattern means for the economy.

The more than 9 million student loan borrowers who are estimated to be late on their payments could experience “significant drops” in their credit scores during the first half of 2025, the Federal Reserve Bank of New York warns.

Some people with a student loan delinquency could see their scores fall by as much as 171 points, the Fed writes in a March 26 report. Credit scores, which impact people’s ability and costs to borrow, typically range from 300 to 850, with around 670 and higher considered good.

The expected drop was highest for borrowers who start with the best scores. Among those with scores under 620, the reported new delinquency could lead to an average 87-point decline.

“Although some of these borrowers may be able to cure their delinquencies,” the Fed writes, “the damage to their credit standing will have already been done and will remain on their credit reports for seven years.”

It’s been a long time since federal student loan borrowers have needed to worry about the consequences of missed payments, which can also include the garnishment of wages and retirement benefits. That’s because collection activity was suspended during the pandemic and for a while after. That relief period officially expired on Sept. 30, 2024.

As student loan delinquencies appear on credit reports again this year, borrowers are likely to face a cascade of financial consequences, said Doug Boneparth, a certified financial planner and the founder and president of Bone Fide Wealth in New York.

“This credit score penalty restricts their access to affordable financing, locking them into a cycle of elevated borrowing costs and fewer opportunities to rebuild their financial stability,” said Boneparth, who is a member of CNBC’s Advisor Council.

For one, finding an affordable repayment plan can lower your chances of falling behind on your bills. Borrowers can apply for an income-driven repayment plan, which will cap their monthly bill at a share of their discretionary income. Many borrowers end up with a monthly payment of zero.

The Education Department recently re-opened several IDR plan applications, following a period during which the plans were unavailable.

Borrowers can also apply for a number of deferments or forbearances, which can pause your payments for a year or more. It may show up on your credit report that you’re not currently making payments on your loan, but you shouldn’t be flagged as late, said higher education expert Mark Kantrowitz.

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Additionally if you’re already in default on your loans, you should consider rehabilitating or consolidating your debt to return to a current status, experts said.

Rehabilitating involves making “nine voluntary, reasonable and affordable monthly payments,” according to the Education Department. Those nine payments can be made over “a period of 10 consecutive months,” its website notes.

Consolidation, meanwhile, may be available to those who “make three consecutive, voluntary, on-time, full monthly payments.” At that point, they can essentially repackage their debt into a new loan.

If you don’t know who your loan servicer is, you can find out at Studentaid.gov.

Experts also recommend that you check your credit reports regularly for free at AnnualCreditReport.com to make sure all three credit rating companies — Experian, Equifax and TransUnion — are showing your correct student loan balance and payment status.

The Social Security Administration is adjusting the timeline and terms of its new identity proofing policies after receiving fierce criticism from advocates and beneficiaries.

The agency on March 18 announced new requirements that would require more people to visit a Social Security office to claim benefits or change their direct deposit information if they are unable to put those changes through online.

With those changes, the Social Security Administration was also putting through stronger identity proofing procedures with the aim of curbing benefit fraud.

The change was slated to go into effect on March 31 — an expedited two-week timeline, which experts said was unprecedented. The agency announced on Wednesday it will move that effectiveness date to April 14.

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“I just have never seen anything like it,” Bill Sweeney, senior vice president of government affairs at the AARP, a nonprofit organization representing Americans ages 50 and up, told CNBC.com last week of the change. The AARP first found out about the policy changes when they were publicly announced on March 18, rather than the typical protocol of being given the opportunity to weigh in ahead of time.

“This isn’t how this agency, or I’m not sure any government agency, rolls out new policies that affect 180 million people who pay into Social Security and rely on this program,” Sweeney said.

The AARP was pushing for the Social Security Administration to reverse the announced changes and work in a more “orderly, transparent and clear change management process,” Sweeney said.

When applying for retirement, survivor or spousal/children’s benefits, individuals should first attempt to do so through their online “my Social Security account,” and if unable to do so online, they must visit a Social Security office to prove their identity and review their application.

To change their direct deposit information, Social Security beneficiaries should first attempt to do so through their online account. If online changes are not possible, they can visit a local Social Security office or call the agency at 1-800-772-1213 to schedule an in-person appointment.

The Social Security Administration said it recommends individuals call to schedule an in-person appointment for applications for retirement, survivors or spousal or children’s benefits where individuals are unable to apply online.

The AARP, in a statement from chief advocacy and engagement officer Nancy LeaMond, said the updates are a “good first step” to respond to concerns about the new policy.

“Merely delaying the implementation of this change is not enough, though,” LeaMond said. “SSA should take a deliberate approach to its proposed changes to customer service that seeks public input, follows a clear communication plan and allows a reasonable timeframe for compliance.”

The Social Security Administration’s acting commissioner, Lee Dudek, assumed the role in February after reportedly publicly disclosing he had been placed on administrative leave for cooperating with DOGE. Last week, Dudek threatened to shut down the agency in response to a federal judge’s temporary restraining order that prevents DOGE affiliates from accessing sensitive Social Security data. He has since reversed his stance.

As the agency’s leadership has been in flux, many observers say they have noticed longer 800 number wait times. Because DOGE has a running list of Social Security offices it plans to close, it will be more difficult to visit an agency office in person, experts say.

“The customer service situation at Social Security has really declined in the past month or so,” AARP’s Sweeney said.

The 800 wait times have “skyrocketed” since November, when they were at a low of about 11 minutes, Sweeney said.

The average time to answer a call is 21.2 minutes, according to Social Security Administration data, while nearly half of calls are not getting answered.

Yet callers have reported experiencing much longer wait times. In an effort to bolster transparency, Dudek plans to increase the “level of detail shared with the public to provide an honest and transparent view of wait times,” the Social Security Administration said on March 24.

As the agency transitions to the new identity proofing policy, some people who need its services feel like they are in limbo.

Lisa Cutler, communications director at the Alliance for Retired Americans, recently tried to contact the Social Security Administration on behalf of an elderly family to process an address change. She spent about an hour trying to get through on the agency’s 800 number before she gave up.

Cutler now estimates it would take a full afternoon to successfully get through to the agency. To make the process more complicated, the family member would have to be present to answer personal security questions.

Under Social Security’s new identity proofing policies, Cutler may instead have to set up an online account on her 87-year-old relative’s behalf. If the change can’t be processed that way, they would need bring the wheelchair-bound relative to a local Social Security office, which would require medical transportation.

The changes have felt like a “Silicon Valley go fast and break things” approach, Cutler said.

“But the problem is you’re dealing with a system that is meant to serve some of the most vulnerable people in our country,” Cutler said.