KEY TAKEAWAYS More than one-third of Americans will use this year's tax refund to pay down debt. The average tax refund for the 2026 filing season is expected to be $750 higher than the previous year. Consumers can use their refunds to help pay down the rising debt levels that many Americans struggled with in 2025. More than two-thirds of Americans expect to receive a tax refund this year, and the majority will use it to pay down their debt. With new and expanded tax breaks from the "One Big, Be ...

Core Insights - US consumer debt reached $18.20 trillion by December 2025, marking a 3.7% increase year-over-year, with the fastest monthly growth compared to the same periods in 2023 and 2024 [1][2] Debt Composition - First-mortgage balances were approximately $12.82 trillion, while home equity lines of credit (HELOCs) increased by 12.6% year-over-year to $421.7 billion [3] - Bankcard balances rose 4.1% to $1.12 trillion, although average utilization slightly decreased to 21.2% due to a 6.5% expansion in credit limits [3] - Private-label retail card balances fell 11.2%, with accounts decreasing by 21.4%, indicating a shift towards more flexible payment options [4] - Auto loans and leases totaled $1.685 trillion, reflecting a modest 1% increase, as consumers opted for longer terms and leasing to manage high vehicle prices [4] - Student loan balances decreased by 1.4% to $1.33 trillion [4] Delinquency Trends - As of December, 5.7% of consumers had at least one account 60 or more days past due, down from a peak of 6.8% in the third quarter [5] - Serious delinquencies for bankcards improved to 3.03% from 3.16% a year prior, although these levels remain above pre-pandemic norms [5] Economic Disparities - A "K-shaped" recovery is evident, where higher-income consumers benefit from asset gains and easier credit access, while subprime borrowers face pressure from rising costs and high borrowing rates [6] - Renewed enforcement of student loans may disrupt traditional payment priorities, affecting housing and auto obligations [6] Financial Wellbeing - The data indicates a widening gap in financial health, with some experiencing prosperity while others face mounting pressure [8] - Record debt levels support consumer spending but also limit household flexibility, particularly for lower- and middle-income families [7] - Economic headwinds, such as tariffs and moderating employment, may impact the sustainability of the current borrowing boom [9]

Consumers Debt Is Piling Up, Data Show. A Weak Job Market Could Make That a Problem. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Consumer Debt Is Piling Up, Data Show. A Weak Job Market Could Make That a Problem.By [Megan Leonhardt]Shar ...

Real estate investor and entrepreneur Grant Cardone stirred a debate last week by calling credit scores “a trap to keep you in debt.” He added that “the wealthy buy assets that don't require a credit score,” implying that building true financial independence means avoiding the traditional credit system altogether. Critics Say That's Easy To Claim From The Top Cardone's post on X on Thursday drew mixed reactions. “Quite easy to say that when you're wealthy enough to buy assets,” one person responded. “E ...

Core Insights - Financially savvy individuals may still overlook key aspects of wealth building, leading to dissatisfaction with their financial situation [1] Group 1: Savings and Debt Management - Having savings while carrying consumer debt is not optimal for wealth, as interest on debt accrues while savings earn minimal interest [2] - It is suggested to limit emergency savings to $1,000 until non-mortgage debt is cleared, allowing for flexibility in managing unexpected expenses [3] - Keeping emergency funds in a checking account is discouraged due to low interest rates, with the national average APY at just 0.07% as of November 17, 2025 [3] Group 2: Housing Expenses - Spending more than 25% of income on housing can hinder financial flexibility, making it difficult to invest and pursue other wealth-building goals [5] - Recommendations include limiting monthly house payments to 25% of income and considering options like larger down payments or smaller homes to maintain budget balance [5] Group 3: Lifestyle Management - The tendency to increase spending with pay raises, known as lifestyle creep, can hinder wealth accumulation by increasing lifestyle-related expenses [6]

Core Insights - A significant financial burden arises from a $1,600 monthly car payment for a 2019 Audi Q8, which is unmanageable after an engine failure requiring a $20,000 repair [1][4] - The individual has a total consumer debt nearing $100,000, including student loans and credit card debt, which complicates the financial situation [2] - The vehicle's warranty only covers $7,000 of the repair costs, leaving the individual responsible for $13,000 out of pocket [1][4] Financial Situation - The individual earns $65,000 annually while owing approximately $65,000 on the vehicle, indicating a mismatch between income and debt obligations [1][3] - The loan for the vehicle carries a 12% interest rate, and the individual initially attempted to rent the vehicle to cover payments [3] - The previous vehicle was stolen, and insurance paid off the balance without providing any cash, adding to the financial strain [2] Options and Recommendations - Selling the Audi without repairs could yield about $30,000, but would still leave a $35,000 loan balance [5] - Repairing the engine would require $13,000 out of pocket but could allow for a sale closer to market value [5] - It is advised to avoid selling to a dealership and to involve a trusted person in the repair and sale process [6]

Core Insights - The couple's financial situation is dire, with a combined income of $130,000 per year but nearly $200,000 in consumer debt and only $3,000 in savings [1][2] - Despite earning approximately $11,500 monthly, they feel significant financial pressure, raising concerns about stability and savings [2][3] - The couple's debt includes $140,000 in student loans, $60,000 in vehicle loans, and a mortgage of about $240,000 [4] Financial Obligations - The couple's total consumer debt is nearly $200,000, which includes $140,000 in student loans, $60,000 in vehicle loans, and a mortgage balance of approximately $240,000 [4] - Alyssa holds $90,000 of the student loan debt, while her husband is responsible for $40,000 [4] Recommendations for Improvement - Immediate and significant lifestyle changes are necessary to improve their financial situation, including selling vehicles and cutting discretionary spending [7] - The focus should be on creating cash flow to pay down the smallest debts first, rather than solely relying on increasing income [5][7] - Ramsey emphasizes that dramatic changes will lead to quicker financial recovery, urging the couple to redirect all available cash towards eliminating consumer debt [7]

Steve Leeman is here at Post9 with the numbers. And Steve, this question about how inflation is impacting holiday spending. >> We're calling it inflation the red-nosed reindeer.How it's really leading spending. Uh it's factoring heavily into consumers views on spending this holiday season. The All-American Economic Survey finding it's affecting where people choose to shop and of course how much.Of the thousands people surveyed across the nation, uh here are some of the results you can see there. 61% say the ...

Our senior economics reporter Steve Leeman is here at Post9 with the numbers. And Steve, this question about how inflation is impacting holiday spending. >> We're calling it inflation the red-nosed reindeer.How it's really leading spending. Uh it's factoring heavily into consumers views on spending this holiday season. The All-American Economic Survey finding it's affecting where people choose to shop and of course how much.Of the thousands people surveyed across the nation, uh here are some of the results ...

With inflation still squeezing household budgets and interest rates staying high for most of the year, national consumer debt continues to climb across borrowing categories — from mortgages and credit cards to auto loans and HELOCs — compared to last year. Read More: 3 Signs You’ve ‘Made It’ Financially, According to Financial Influencer Genesis Hinckley Find Out: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too In June 2025, Americans collectively owed $18.33 trillion in ...