Inflation and economic changes are affecting how people live. That’s why personal loans will drive consumer credit growth in 2026. TransUnion forecasts a nearly 5.7% rise, with many middle-class Americans relying on short-term borrowing. The situation is similar in the UK, with individuals borrowing an extra £2.1 billion through their credit cards.
Households, especially low-income ones, already felt the effects. A recent surge in gas prices has many ringing their alarm bells, and although both the UK and the US try to find solutions, tariffs and labor shortages get in the way.
In this article, we’ll assess how increasing transportation costs affect families and look at how things are going in both countries.
The Numbers Behind the Squeeze
Let’s start with why commuting is expensive in the UK. If we take drivers into account, the average person spends £421.42 per month on petrol, parking, tax, and insurance. Train commuters pay even more, with expenses usually reaching £512.72 per month. A lot of Brits have grievances specifically about train ticket prices, but there’s a reason behind it.
One of the leading contributors to the rise was the high rail fares. They increased by 4.9% on average in 2024, with some commuters paying about £100 a month more than car users. The increase has been consistent and gradual, and shows no signs of slowing even this year.
In the US, many families are unhappy with high transportation costs. It has been the highest annual consumer expense since 2021, at $12,295. Most of the money goes towards purchasing a car, gasoline, and other fuels, and motor oils. And with gas prices rising this year, and the tariffs partially complicating supply, Americans could end up spending even more.
This development is especially disparaging for low-income households. They spend much more, about 30% of their income, on transportation.
How Families Are Absorbing the Hit
The first major development in both countries was the re-evaluation of car ownership. Some families in the UK decided to rent electric bikes. This allowed them to cut their car mileage by 59%, with many families outright buying them after testing the waters. The used car market had also experienced a surge of interest, with families opting for older cars to offset upfront costs.
Something similar is also happening in the US. Back in 2022, AAA survey results showed an interesting trend. 64% of respondents said they’ve changed their driving habits in response to high prices. They got into carpooling, consolidated certain errands, and even chose public transportation where available.
If we compare both countries, the circumstances are similar. Transportation costs remain high across the board, but people begrudgingly pay the price. Some even go as far as to borrow money.
Short-Term Loans as a Solution
Credit card debt exceeds £70 billion. This figure means that credit cards account for 4.3% of total debt taken on by UK citizens. Recent data suggest an additional £ 2.1 billion increase, strongly indicating that more and more people are opting to borrow.
In the US, analysts are recording similar trends. Credit card balances reached an all-time high of $1.28 trillion at the end of 2025. More and more Americans turn to short-term options: payday, personal, and installment loans. Services like 15M Finance help them stay afloat and plan for unexpected expenses by creating reliable fallback options.
What Governments Are Doing — and Where They’re Falling Short
The United States has paved the way for more affordable transportation through EV incentives, such as the Inflation Reduction Act. They are allowed to save up to $7,500 on new EVs and $4,000 on used ones. However, with the passing of Trump’s “One Big Beautiful Bill Act”, they are effectively void.
The UK chose to address the train commute problem and will freeze all rail fares this year. Estimates suggest the reeze can save passengers £600 million over the 2026-2027 period. However, the measures affect only regulated fares, which account for about half of all rail tickets.
Both governments definitely took steps in the right direction, but it’s not enough. The US outright canceled a good incentive, while the UK is slow to catch on and only partially solves the issue. What’s clear is that a solution is possible, but it will, unfortunately, take time to develop.
Start Saving Now: Useful Tips
The very first step in reducing spending is knowing your expenses. Any family can start by tracking fuel, fares, insurance, and maintenance. Logging all of these ensures you stay within your budget. UK citizens who compare insurance quotes annually tend to save £100 or more on their plans. Considerably more Americans use GasBuddy to find lower-priced fuel.
If you use trains regularly, season tickets and multi-journey passes tend to offer better value than pay-as-you-go fares. In the UK, a 16-25 Railcard cuts train fares by up to a third, and similar discount schemes exist for older passengers and families.
Finally, building a modest transport emergency fund reduces reliance on credit when unexpected costs arise. Setting aside even a small fixed amount monthly creates a buffer against repair bills and sudden fare increases. Transport expenses will continue to fluctuate in 2026, and the families best placed to manage that are those who have planned for it in advance.
article written by Kayla Harris
