Student loan delinquencies are skyrocketing, but it’s just the tip of the iceberg. With household debt now sitting at a record $18.2 trillion and credit card balances surpassing $1 trillion, the American consumer is maxed out. Auto loan delinquencies have hit their highest levels in decades, and 1 in 4 student loan borrowers is already struggling to make payments just months after the pause ended.
“This isn’t just about mispayments. This is a systemwide warning,” warns Taylor Kenney. The foundation of U.S. consumer spending is crumbling, and the ripple effects could be catastrophic—jobs, credit, lending, and even trust in the financial system itself are at risk.
If Americans can’t keep up with their payments, what happens when the debt avalanche truly begins? Are we witnessing the slow-motion collapse of the American middle class?