Debt is rising fast.

Many families are struggling.

It's a harsh truth that many are facing today.

Total household debt in the US hit $18.04 trillion in late 2024. This is a big number. Auto loans and credit cards are the main culprits. Serious delinquencies, meaning people are 90 days or more late on payments, are at a 14-year high. Cars are more expensive now. Many rely on credit cards to make ends meet.

Overall delinquency rates are still below pre-pandemic levels. However, the rise in late payments is concerning. The rate is now 3.6%. High credit card usage is also a red flag. It has crossed 23.8% for the first time since 2013. This points to a growing financial strain for many households.

The picture is mixed. There are some positive signs. Incomes have risen. The household debt service ratio, which measures debt payments compared to after-tax income, is still below pre-pandemic levels. Wealthier households are driving consumer spending. This suggests some economic resilience.

But the rising delinquencies and high credit card use cannot be ignored. Along with stories of families struggling, they hint at potential trouble ahead. If economic conditions worsen, like job losses or medical emergencies, many could face a financial downturn.

Things could go downhill quickly. Households need to be prepared for unexpected crises. It's crucial to keep an eye on the rising debt and delinquencies.

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