Why January resolutions fail: Americans spend 672% more on phones, finance it on credit cards

Saving money tops America’s New Year’s resolutions. But four weeks into 2026, credit card bills arrive sky-high, while rent, groceries, and gas refuse to drop.

What’s inflating those bills, and how do you actually stick to resolutions past January?

InvestorsObserver’s new analysis reveals the budget drain: Americans spend up to 672% more on phones since 1997 (inflation-adjusted), led by North Carolina, North Dakota, and Washington.

Americans Spend up to 672% More on Phones Since 1997 – a “Tech Spending Diet” Can Save Your New Year’s Resolution

Data shows that North Carolina and North Dakota leading decades‑long booms in phone and tech purchases while U.S. credit card debt tops $1.23 trillion.

Four weeks into the new year, most Americans are staring at the same credit card bills they swore they’d cut, while grocery, rent and gas prices stay just as high. A new analysis shows exactly where American household budgets have been bleeding for nearly three decades.

InvestorsObserver analyzed how much people spend on durable goods – things like cars, furniture, appliances, electronics, and equipment – going all the way back to 1997, and adjusted everything for inflation so it’s apples to apples.​

They have found that the largest increases in credit card spending are for telephone and communication equipment – more than 600% in several U.S. states between 1997–2024.

“Many people treat phone upgrades like air. The spending surge since 1997 shows they are locked in a tech-upgrade cycle that’s harder to break than most resolutions,” said Sam Bourgi, senior analyst at InvestorsObserver.

Top 10 States with the Highest Spending on Phones 

Phone upgrades have become a national habit, but these 10 states show the biggest increase in inflation-adjusted spending on telephone and related communication equipment since 1997.

The increased spending trend mirrors the numbers of the global smartphone shipments that in 2024 rose 2.4% from the previous year.

North Carolina tops the list with households now spending more than seven times what they did in the late ‘90s on phones and other communication equipment. That’s 7.66% average growth every single year for 27 years – far outpacing wages or typical inflation.

Even recently, the trend shows no signs of stopping. Washington and South Dakota each jumped 37% from 2020–2024, while Texas grew 21% over the same period.

South Dakota leads with the highest yearly average at 7.95%, proving smaller states can spend big per person. Most states here saw 1–5% gains even in 2024 alone.

“Every 2–3 years, people in these states swap for the newest model. These devices lose half their value the moment they leave the store. When you combine that with the fact that credit card balances have grown a lot since 2018, largely financing these same tech purchases, you’re looking at families and individuals paying interest on depreciating assets,” noted Bourgi.

Resilient Spending, but Rising Debt

According to the most recent data, U.S. consumer spending increased and remained resilient, as households stepped up purchases of a range of goods and services, despite the economic uncertainty.

“People enjoy buying, it boosts our mood, it shows off wealth. On the surface it seems positive, and the economy remains resilient. But if your paycheck hasn’t grown as fast as your spending, that resilience can easily turn into a debt problem by mid-year, which is why the tech spending diet is your best bet for making resolutions stick,” said Bourgi.

About the Analysis

InvestorsObserver researchers used federal Personal Consumption Expenditure (PCE) data from the U.S. Bureau of Economic Analysis across all 50 states from 1997–2024, focusing on inflation-adjusted changes in durable goods spending.

Then, this data was cross-referenced with credit loan trends (obtained from Bloomberg) from American Express, Discover, and Capital One (2018–2025).

The team then calculated how expenditures have changed over time. All calculations are inflation-adjusted.

ABOUT SAM BOURGI

Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including FOX 5 DC, CBN, KFYR TV, 11Alive, and ABC30, and is often quoted by such media outlets as Bloomberg, SF Chronicle and ZeroHedge. 

ABOUT INVESTORS OBSERVER

InvestorsObserver is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.