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Household debt is at record highs and staying current is getting difficult

Rising auto, credit card, and student loan delinquencies signal growing financial strain among U.S. households
Younger and lower-income Americans are falling behind fastest as inflation and high rates erode budgets
Total household debt now exceeds $18 trillion, raising fears consumers are losing control of their finances

After years of relative calm, American borrowers are slipping behind on their debts at the fastest pace in over a decade a sign that consumers may be losing control of their finances as living expenses and borrowing costs remain stubbornly high.

Household debt climbed to a record $18.4 trillion in the second quarter of 2025, according to the Federal Reserve Bank of New York, while the nations gross federal debt hit $38 trillion for the first time. The figures highlight mounting strain across every layer of the U.S. economy from Washingtons balance sheet to families credit card bills.

While most borrowers are still keeping up, delinquencies are rising sharply. Auto loans, credit cards, and student debt are driving the increase, even as mortgage delinquencies traditionally the biggest category of household debt remain historically low.

Borrowers falling behind across credit lines

Auto loans are among the hardest-hit, with about 5% of borrowers 90 days or more past due, up roughly 12% from a year earlier, according to LendingTree.

Credit card trouble is spreading quickly too: nearly 12% of balances are 90 days delinquent, the highest level since before the pandemic, Federal Reserve data show.

Student debt has reemerged as a flashpoint since federal loan payments resumed after a three-year pause. More than one in ten borrowers are already behind, the New York Fed reports, with millions seeing their credit scores tumble.

These trends suggest that household finances are fraying at the edges, said one Federal Reserve economist. Were not seeing panic yet, but the pressure is clearly building.

Young and low-income borrowers hit hardest

The financial pain isnt distributed evenly. Gen Z and millennial borrowers are missing payments at far higher rates than older generations with car-loan delinquencies exceeding 7% among younger drivers compared with about 4% for Gen X.

Geographically, the South is showing the greatest distress. Mississippi, Louisiana, and Georgia now lead the nation in auto-loan delinquencies, with nearly one in ten borrowers behind on payments.

Credit card delinquencies are rising across all income levels, but the gap is widening: in the lowest-income neighborhoods, more than 22% of cardholders are delinquent, versus about 8% in affluent ZIP codes, according to the St. Louis Fed.

Economists warn of slow-moving debt stress

Experts stress that this is not yet a replay of the 2008 crisis. Households still spend about 11% of disposable income on debt payments manageable by historical standards. But analysts warn that the trend is turning dangerous, particularly for borrowers with variable-rate or subprime debt.

Were watching a slow bleed, said analysts at VantageScore. Consumers are stretching to keep up, but higher rates and prices are eating away at their margin of safety.

If inflation remains elevated and the Federal Reserve keeps interest rates high, economists warn delinquencies could keep climbing and the weakest households could fall further behind.

The story isnt collapse, said a senior researcher at the New York Fed. Its erosion a gradual loss of financial control thats spreading from the margins inward.

"So many of our neighbors live in fear," one supervisor says

• County supervisors back new privacy rules for the Sheriffs Departments use of automated license plate reader
• The motion calls for deleting most plate data after 60 days and bans use for immigration enforcement
• The policy follows state debates over law enforcements data-sharing with federal agencies

Los Angeles County supervisors have voted to impose new privacy safeguards on how the Sheriffs Department collects and shares license plate data, a move aimed at curbing potential misuse of information gathered by automated cameras on patrol cars and roadways. Los Angeles, with about 10 million residents,is the most populous county in the United States.

The boards motion, led by Supervisor Hilda Solis, directs the Sheriffs Department to train deputies annually on privacy rules, bar data from being used for non-criminal immigration enforcement, and delete most plate records after 60 days unless they are tied to criminal investigations.

The measure comes after CalMatters reported that several Southern California law enforcement agencies shared similar data with federal immigration authorities.

Sheriffs department to review practices and report back

The Sheriffs Department, which operates independently of the board, said it welcomes the motion and will review its policies. Deputies are expected to submit updates to the county by January. The department told CalMatters it currently has no arrangements to share data with federal agencies and operates more than 900 automated readers across the county.

California law already prohibits the sharing of plate data with federal or out-of-state entities and requires agencies to adopt privacy policies for their use. Still, a recent state investigation found numerous departments violating those rules, prompting legal action by Attorney General Rob Bonta.

Many provisions in the L.A. County measure mirror those in Senate Bill 274, a statewide proposal vetoed earlier this month by Gov. Gavin Newsom. The bill would have limited how long police can retain license plate data and required detailed justifications for each use.

Supervisor Solis said she introduced her county motion in part to show support for SB 274 before the governors decision. Board Chair Kathryn Barger voted against the measure, saying the 60-day retention limit could hamper criminal investigations.

Privacy concerns meet policing priorities

Despite disagreements, supervisors emphasized that automated readers remain valuable tools for recovering stolen cars and solving crimes but only if the public trusts that their movements arent being tracked for unrelated purposes.

As so many of our neighbors live in fear, sharing sensitive data only increases risks and erodes confidence, said Los Angeles City Councilmember Eunisses Hernndez, a critic of the technologys use by the LAPD.

While the county motion applies only to the Sheriffs Department, not city police, it underscores growing pressure statewide to balance law enforcement needs with privacy rights.

Eleanor Holmes Norton scammed in apparent home services fraud

• D.C. police say long-serving delegates credit card was charged more than $4,000 for unauthorized services
• A longtime aide reported the incident after discovering the charges and canceling the cards
• Questions resurface about Nortons health and political future as she plans to run for reelection

Eleanor Holmes Norton, Washington, DCs veteran nonvoting delegate to Congress, was defrauded of thousands of dollars after suspects posing as home repair workers charged her credit card for unauthorized services, D.C. police confirmed.

According to a public police report obtained by POLITICO, more than $4,000 in charges were made to Nortons card for work allegedly performed at her Washington residence. The report was filed by Jacqueline Pelt, a longtime aide and close ally, who is listed as living at Nortons address.

Aide reported unauthorized charges

The report states that Pelt did not authorize any work to be performed at Nortons home and quickly canceled the delegates credit cards upon discovering the fraudulent activity. NBC4 Washington, which first reported the incident, said an internal police memo described multiple suspects posing as HVAC workers.

That internal document also reportedly noted that Norton, 88, was in the early stages of dementia and identified Pelt as her caretaker with power of attorney. POLITICO said it could not independently verify those details.

In a statement to Washington's NBC4, Nortons office pushed back on the police reports medical reference, saying the diagnosis was based on an assumption the reporting officer was unqualified to make. The office also denied that Norton has a caretaker, clarifying that a longtime employee and friend serves as the house manager, residing at a separate address.

Political implications amid reelection plans

The incident comes as Norton continues to face scrutiny over her health and visibility. Her low public profile during key moments including President Donald Trumps 2020 deployment of the National Guard to Washington has drawn concern from allies. Donna Brazile, a veteran Democratic strategist, recently called on Norton to retire in a Washington Post op-ed.

Despite that pressure, Norton has maintained she intends to seek reelection next year. She now faces her most competitive primary challenge in decades, with D.C. Council members Brooke Pinto and Robert White both mounting bids to unseat her. Nortons campaign filings show limited fundraising activity heading into the race.

How to spot the real deal and skip the duds

• What the labels mean: Open-Box = basically new return; Refurbished = used, fixed, tested; Renewed = store-run refurb program
• How to choose: Pick Open-Box for near-new; go Refurb/Renewed for bigger savings; pay attention to battery life on phones
• Retailer quick hits: Amazon: look for the Renewed Guarantee. Best Buy: choose Excellent when prices are close. Walmart: favor Walmart Restored and Sold & shipped by Walmart

If youve ever stared at a 40% off Renewed laptop and thought, Is this a steal or a science project? youre not alone. Heres the plain-English, no-nonsense guide I wish someone had handed me before I started bargain-hunting electronics.

First, what the labels actually mean

Open-Box: Someone bought it, opened it, changed their mind, then returned it. These often have little to no wear and tear on them. Youre mostly paying for a dinged box or missing twist ties. They are often still eligible for the original manufacturer warranty.

Refurbished: Used, had an issue, then got repaired, cleaned, and tested. The refurb process is typicallydone by the manufacturer or an authorized refurbisher. Typically comes with a refurb warranty thats separate from the original warranty.

Renewed: Renewed is the stores version of a refurbished product (like Amazon Renewed). The warranty comes from the stores program, not from the original manufacturer of the product.

Which one topick in real life

I like Open-Box items when I want something thats basically new without paying the full retail price. Works great on products like Dyson vacuums, KitchenAid mixers, gamingconsoles, and name-brand earbuds.

I tend to go the Refurb/Renewed route when I want the lowest price and dont mind a smallimperfection like a scratch, small wear mark, or ding. Products where this makes the most sense includes TVs, monitors, soundbars, and laptops.

When shopping in-store at a place like Best Buy, heres my five-minute does this thing work? check that I perform when considering open-box or refurbished products.

1. Power it on.
2. Plug something into every port.
3. Pair Bluetooth if applicable.
4. Join the stores Wi-Fi if applicable.
5. Check the screen closely for tiny dead spots or a faint shadow of something that used to be on the screen (like a menu bar or scoreboard) that still lingers.
6. Make sure the charger/remote/cables are in the box and look authentic.
7. If its a phone or laptop, check battery health in settings.

If anything feels off, dont be afraid to put it back on the shelf. Or if its an issue you can live with, use it as leverage to ask for an additional 10-15% discount.

Managers are eager to clear stuff out if it has issues, so dont be afraid to negotiate the price. Youll be surprised how often theyll accept your low offer.

Pro tip: For phones and laptops, battery health is a really big deal. If the seller cant tell methe minimum battery capacity or cycle count, I assume the worst and typically walk.

What's a fair discount?

Open-Box: I look for 1530% off the current new price.

Refurb/Renewed: I want 2545% off (more if its last years model).

Keep in mind that if the discount is tiny, its often smarter to just buy new and not take on any potential headaches.

Retailer playbooks (what actually works)

Heres a clear, practicalbreakdown of how to shop Amazon Renewed, Best Buy Open-Box, and Walmart Restored without getting burned.

Amazon

Look for Amazon Renewed products with the Renewed Guarantee listed right on the product page and try to pick items that are sold and shipped by Amazon. Thatll give you a 90-day return period if something goes wrong, three times the normal 30-day policy that comes with most 3^rd party Renewed sellers.

If you do select a Renewed 3^rd party seller, be sure they have a long track record and positive reviews. Also, look for recent reviews that mention renewed or refurb.

Here are the four current condition grades for Amazon Renewed:

Refurbished Premium This is the best options for risk-averse buyers. No scratches, no signs of cosmetic damage are visible when the product is held 12 away from your eyes. If the item has a battery, they guarantee 90% of the original battery life. Premium graded products come with a very solid 365-day refund or replacement policy along with free return shipping.

Refurbished Excellent By far the best value for most shoppers. Comes with the exact same condition requirements as Premium above. The only differences are 80% battery life and a 30-day return or replacement policy.

Refurbished Good Settle for this only if the discount is big enough (3545% off) and youre fine with light scuffs. No scratches on screens, but light scratches on the body of the product that are barely visible from 12. 80% battery life and a 30-day return or replacement policy.

Refurbished Acceptable Skip this unless its a steal (>45% off) and you dont care about cosmetics. Items come with small (they call them shallow) scratches on the screen. Clearly visible scratches on the body of the item from 12 away. 80% battery life and a 30-day return or replacement policy.

Best Buy

When shopping Open-Box electronics at Best Buy, grades matter a lot. When shopping their website, youll see the condition grade right below the price.

They break it down into the following 3 categories:

Excellent - This grade will get you 5-15% off the retail price, I like to shoot for at least 10% savings. Looks near-new, no obvious flaws; usually includes all original parts and accessories (manual/box may vary).

Good - Expect 15-25% savings. Items will haven minorcosmetic wear andbe fully functional.Accessories are usually included (any exceptions are noted on the page).

Fair - Expect 25-40% off the retail price. Noticeable wear or missing minor accessories (disclosed on listing). Item has still been tested and is working.

Pro tip: When open-box prices at Best Buy are close (within about $20 or

Also, keep in mind that Best Buy only gives you 15 days to return the item if you get it home and decide its not for you. For this reason, open and test immediately. Dont let the return window expire on your kitchen counter.

When shopping in-store, theyll have the same condition ratings on the item. Always ask to inspect the item before paying. Open the box, run the five-minute test described above, and confirm the return window (it can be shorter on open-box).

Walmart

Walmart recently revamped their renewed electronics section of their website in an effort to compete with Amazon.

The selection of renewed products is quite impressive and includes brands like Apple, Samsung, Sony, Bose, Dyson, Shark, Vitamix, and KitchenAid to name a few.

They also introduced a new condition rating system that breaks down like this:

Restored Premium Best for Walmart shoppers who want brand-new vibes but love a 10-25% discount. Items look virtually new (no visible cosmetic damage at arms length). Refurbished by the maker or an authorized partner and batteries (when applicable) are at the 90% life cycle. Products come with a 1-year warranty and 90-day free returns.

Like New Expect a 20-30% discount from the retail price. Best for most Walmart buys where you still want it to look great on Day 1. Very light signs of use, hard to spot from 812 inches; fully working with battery at 80% life cycle. Accessories are typically included (check listing carefully). 90-day free returns.

Good Perfect for shoppers wholl happily except minor scuffs or small scratches for a 30-40% discount. Products are fully working and all essentials are included unless the page says otherwise. 80% battery life cycle. 90-day free returns.

Fair Expect a 40-55% discount. Noticeable wear and/or missing minor accessories (disclosed on the listing); tested and working. 80% battery life cycle. 90-day free returns.

Stick to listings Sold & shipped by Walmart when possible (or top-rated Restored sellers) and always compare the restored price to todays new price on the exact model to see what the savings is.

When it arrives, test it right away and use the 90-day free return if anythings off.

Going direct (Apple, Samsung, Dyson, etc.)

While Im not opposed to buying refurbished products directly from the manufacturer, be aware that they often cost more than the above options.

But the extra costs will often get you a new battery and even new product shells (Apple does this often). Youre also guaranteed official parts, and the brands standard warranty.

Its really your call. Spend a bit more for the sure thing, or pocket the savings and roll with some minor trade-offs.

Why your mindset may matter more than the ache in keeping you moving

• The amount of physical activity someone with chronic pain does depends far more on how well they cope with pain (their resilience) than how much pain theyre actually in.

• A study of 172 adults with long-term musculoskeletal pain found that higher pain resilience predicted more activity while fear of movement (kinesiophobia) mattered much less when resilience was taken into account.

• The findings suggest that for managing chronic pain, building resilience (attitudes, coping) may be as important or more so than simply reducing pain intensity.

When youre dealing with persistent pain, its easy (and logical) to assume the more it hurts, the less youll move.

But fresh research out of the University of Portsmouth suggests that your mindset might play a much bigger role. Their work reveals that it isn't strictly how much it hurts, but how you deal with it your resilience that makes the biggest difference in staying active.

In plain terms: two people might have similar pain levels but the one who thinks, I can still keep going, is far more likely to stay physically active than the one whose pain bursts their motivation.

What we found is that it's not how much pain you're in that determines whether you stay physically active it's how you think about and respond to that pain, indicating that how individuals respond to and think about pain matters more than their actual pain sensitivity, researcher Dr. Nils Niederstrasser said in a news release.

We suspected resilience plays a major role, and this study helped confirm that.

The study

The study enrolled 172 adults who had experienced musculoskeletal pain for more than three months. Participants completed validated questionnaires that measured:

• Their average and worst pain over the past week using a visual analogue scale.
  

• Their level of pain resilience (how well they maintain emotional and physical functioning despite pain) via the Pain Resilience Scale.
  

• Their degree of kinesiophobia (fear of movement because it might cause pain or injury) with the Tampa Scale.
  

• Their physical activity levels by using the Recent Physical Activity Questionnaire, converting responses into energy expenditure (kJ/kg/day).
  

Statistical models probed how pain related to activity, and whether resilience or fear of movement served as bridges in that relationship.

The results: Resilience in the drivers seat

The headline finding: while pain was negatively associated with activity (i.e., more pain less movement), a large portion of that link ran through resilience. Specifically:

• Approximately 42.8 % of the association between pain and lower activity was explained by lower pain resilience.
  

• When both resilience and fear-of-movement were included, only resilience remained a significant indirect pathway. Fear alone explained just about 6.4 % of the link.
  

• In a regression model including pain intensity, number of painful areas, pain duration, frailty and the psychological measures, only higher pain resilience (and being male, in this sample) significantly predicted greater activity. Fear of movement dropped out.
  

People with greater resilience can maintain a positive attitude and push through discomfort, and this psychological factor is a better predictor of physical activity than pain intensity itself," Dr.Niederstrasser said.

This is a significant shift from historically focusing on negative factors like fear of movement, to understanding the power of positive psychological resilience in managing chronic pain."

Consumer takeaway

If youre managing chronic pain, this study suggests a shift in focus might help.

Rather than only asking How much does it hurt, you might also ask How do I respond when it hurts?

Building resilience the mindset of I can still move, even though Im in pain could be a game-changer in staying active and improving wellbeing. Of course, the study was cross-sectional (a snapshot in time), so it doesnt prove resilience causes more activity. But it strongly points to the idea that how you think about pain matters.