US Household Debt and Financial Struggles Rise in Q2 2025

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Source: Wolf Street
TL;DR Summary

In Q2 2025, total household debt increased modestly to $18.4 trillion, with a decline in debt-to-income ratio indicating improved consumer financial health, despite a significant spike in delinquent federal student loans as they re-enter credit reports after forbearance. Foreclosures remain low, and third-party collections are at record lows, but the rise in student loan delinquencies and potential future collection actions pose risks to the credit landscape.

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