Americans have always sought debt relief after the holidays. Now their struggle is year-round.
Published On Feb 16, 2025, 10:00 AM
As Americans increasingly seek year-round assistance with debt management, their overall household debt has climbed to a record $18.04 trillion. Many are struggling with high auto loan payments and rising credit card balances, with serious delinquencies reaching a 14-year high. The trend shows that consumers are relying on credit more than ever due to the rising costs associated with living expenses and car payments. If the Fed maintains high interest rates in response to persistent inflation, the financial pressure on households may worsen. Experts recommend seeking advice before reaching a crisis point.
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The increased reliance on credit and the record levels of household debt may suggest that financial service companies could see increased demand for debt management solutions. ETFs or companies in the financial services sector, particularly those focused on consumer credit and debt management services, might benefit from this trend. Alternatively, auto loan companies may face increased delinquency rates and pressure on their stock prices due to struggling consumers.
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