Core Insights - The second quarter of 2025 shows a steady delinquency rate of 1.5% on total U.S. consumer debt, with total consumer debt reaching $17.86 trillion, marking a 2% increase year-over-year [1][2][9] - A K-shaped recovery is evident, with subprime borrowers experiencing increased financial strain, as their share of bankcard debt has risen to 22.1%, a 3.5% increase from May 2024 and a 50.9% increase from May 2021 [3][4] Consumer Debt Trends - Total U.S. consumer debt reached $17.86 trillion in June 2025, up from $17.80 trillion in May and $17.73 trillion in April, reflecting a month-over-month increase of 0.3% [1][9] - The total bankcard debt for subprime borrowers has surged by 135% to $233.1 billion in May 2025 compared to $99.4 billion in May 2021, while total bankcard debt for all consumers grew by only 54% [3] Student Loan Insights - Outstanding student loan debt decreased to $1.33 trillion in June 2025, an 11% year-over-year decline, with the number of active accounts falling by 15.6% to 146.7 million [5] - Severe delinquency rates for student loans have shown volatility, peaking at 18.73% in May before slightly decreasing to 17.95% in June [5] Bankcard and Auto Credit Trends - Bankcard balances increased to $1.07 trillion in June 2025, with a year-over-year growth of 4.2%, while delinquency rates fell to 2.79%, down from a peak of 3.22% in November 2024 [6][8] - Auto loan and lease debt grew to $1.68 trillion, with leases increasing by 13.6% while auto loan balances rose only 1.1%, indicating a shift in consumer preference towards leasing [7][8]