Core Insights - US household debt reached $18.8 trillion in Q4 2025, increasing by $191 billion from the previous quarter and $740 billion year-over-year, with a total increase of $4.6 trillion since the end of 2019 [2] Debt Composition - Mortgage balances are approximately $13.17 trillion, credit card balances are $1.3 trillion, auto loans are $1.7 trillion, and student loans also stand at $1.7 trillion [3] Delinquency Trends - The share of total household debt in some stage of delinquency rose to 4.8% in Q4 2025, up from 4.5% in the prior quarter, marking the highest level since 2017 [4] - The percentage of mortgages entering serious delinquency increased to 1.4% in Q4, up from 1.09% in the previous quarter, although overall mortgage performance remains stable [6] Regional Disparities - Delinquency rates are rising more rapidly in lower-income areas and regions with deteriorating labor or housing market conditions [8] - Seriously delinquent multifamily loans at Freddie Mac have reached 0.48%, the highest in over 21 years, while Fannie Mae's rate is at 0.75%, nearing levels seen during the 2008 financial crisis [8]

Core Insights - A significant portion of individuals, 29%, regret taking on excessive debt, indicating a common issue in financial management [1] Group 1: Budgeting and Financial Management - Establishing a budget is crucial for managing debt, allowing individuals to track income and expenses effectively [3][4] - A well-structured budget can reveal areas for cost-cutting, enabling better loan payment management [5] Group 2: Loan Understanding and Refinancing - Understanding the details of a loan agreement is essential for regaining control over financial obligations [5][6] - Refinancing can be a viable option for those with high-interest loans, potentially leading to significant savings on interest payments [7][10] Group 3: Seeking Assistance - Engaging with a debt counselor can provide valuable support and strategies for managing debt [11] - Negotiating with lenders may offer temporary relief options, such as payment postponements, for those facing financial hardship [13] Group 4: Debt Repayment Strategies - Developing a debt payoff plan based on a realistic budget is necessary for effective loan repayment [14][15] - Exploring additional income sources or reducing expenses can facilitate extra loan payments, aiding in faster debt resolution [16] Group 5: Learning from Experience - Reflecting on past borrowing decisions can help individuals avoid future debt pitfalls, emphasizing the importance of financial education [17][18]

Construction on the Marriner S. Eccles Federal Reserve Board Building in Washington, Jan. 12, 2026.Pete Kiehart | Bloomberg | Getty ImagesThe Federal Reserve kept its benchmark interest rate unchanged Wednesday at the conclusion of its first policy decision of the year. In the face of escalating political pressure from President Donald Trump, a softening labor market, persistent inflation pressures and an uncertain geopolitical landscape, "there is no shortage of confusing narratives," said certified financ ...

Core Insights - The article discusses the impact of tax deductions on taxable income and highlights the importance of choosing between standard deductions and itemizing deductions for maximizing tax benefits [1][2][3] Standard Deduction - Approximately 91% of U.S. taxpayers utilized the standard deduction in 2023, making it the most common tax break [2] - The standard deduction has nearly doubled since 2018 and now adjusts for inflation, providing significant tax relief without the need for itemization [3] - For taxpayers aged 65 and older, a new "senior bonus" deduction of up to $6,000 (or $12,000 for married couples) is available, which phases out at modified AGI levels of $75,000 for individuals and $150,000 for married couples [4] Above-the-Line Deductions - Certain deductions can be claimed even without itemizing, known as "above-the-line" deductions, which reduce gross taxable income [5] - Contributions to traditional IRAs and 401(k)s can significantly lower taxable income, with potential reductions exceeding $20,000 for high earners [6][7] - Health Savings Account (HSA) contributions offer a triple tax advantage and are expected to have expanded eligibility starting in 2026 [9][10] - Taxpayers can deduct up to $2,500 in student loan interest, but this deduction phases out for higher earners [11][12] Itemized Deductions - Itemizing deductions is beneficial primarily for those whose total itemized deductions exceed the standard deduction thresholds of $15,750 for single filers and $31,500 for married couples [13] - The state and local tax (SALT) deduction cap has increased to $40,400 for the 2025 tax year, significantly benefiting homeowners in high-tax states [16][19] - Mortgage interest deductions remain valuable, especially with the recent reinstatement of deductibility for private mortgage insurance (PMI) [20][21] - Charitable donations can be deducted if itemized, with new rules allowing standard deduction filers to deduct up to $1,000 for cash donations starting in 2026 [23][25] Medical Expenses - Medical expenses are deductible only if they exceed 7.5% of adjusted gross income, making it a challenging deduction for many [26][27]

Core Insights - Millennials are approaching retirement age and may feel that achieving wealth in retirement is unlikely due to financial challenges faced during their upbringing [1] Group 1: Debt Management - Debt is identified as a significant barrier to financial goals, including retirement, and millennials are encouraged to avoid certain types of debt [3] - Credit card debt and buy now, pay later (BNPL) schemes are highlighted as particularly detrimental, with student loans also posing risks due to interest capitalization [4] Group 2: Housing Expenses - Millennials are advised to avoid overspending on housing, viewing their primary residence as a nonperforming asset that incurs ongoing costs such as taxes and maintenance [5] - The 2008 housing crisis serves as a cautionary tale for millennials regarding the liquidity and resale value of properties [6] Group 3: Saving Strategies - Aggressive saving is emphasized as crucial for millennials, with the notion that prioritizing savings can lead to significant wealth accumulation over time [6] - Time is presented as a critical factor in wealth building, suggesting that early and substantial savings can provide a competitive advantage [7]

Core Insights - U.S. household debt has reached a record high of $18.59 trillion in Q3 2025, marking an increase from $17.94 trillion the previous year and $18.39 trillion in the previous quarter [3] - Mortgage balances constitute the largest portion of this debt, totaling $13.07 trillion after a $137 billion increase [3] - Credit card debt has risen by $24 billion to $1.23 trillion, reflecting a 5.75% increase year-over-year [3][4] - Student loan balances have also increased by $15 billion, reaching $1.65 trillion, with delinquency rates rising sharply to 9.4% for loans 90 days or more overdue [4] Household Debt Breakdown - Total household debt: $18.59 trillion in Q3 2025, up from $17.94 trillion the previous year [3] - Mortgage debt: $13.07 trillion, increased by $137 billion [3] - Credit card debt: $1.23 trillion, increased by $24 billion, 5.75% higher than a year ago [3][4] - Student loan debt: $1.65 trillion, increased by $15 billion, with 9.4% of balances delinquent [4] Debt Management Strategies - To manage credit card debt, it is advised to stop using cards and pay balances in full each month, or at least more than the minimum [5] - The Snowball Payment Method focuses on paying off the smallest balance first, while the Avalanche Method prioritizes the highest-interest cards [6][7] - Debt consolidation options include transferring debt to a low-interest card, obtaining a low-interest consolidation loan, or using a home equity loan [8]

Core Insights - The article discusses a financial decision made by Ryan Ermey regarding his student loan and investment strategy as he prepares for a wedding in 2027 [1][2][3]. Financial Strategy - Ermey has shifted his financial strategy from investing extra savings to saving for his upcoming wedding, leading to a significant cash position [2]. - He is currently making minimum payments on his student loan, which has an interest rate of 6.55%, and will not be fully paid off until late 2027 if he continues this approach [3][4]. Expert Opinions - Financial planners generally advise paying off high-interest debt, such as Ermey's student loan, given that his savings account earns only 3.4% interest annually [5]. - The guaranteed return from paying off the student loan at 6.55% is considered more beneficial than potential earnings from savings accounts or investments [5][6]. Investment Returns - Historical data indicates that a diversified U.S. portfolio has yielded a 7.1% return over 30 years, while an aggressive portfolio in the S&P 500 has returned 10.5% [7].

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Your credit score is one of the most important numbers in your life. It impacts everything from the interest rate you pay on a car loan to your ability to qualify for an apartment independently. Understanding what credit inquiries are, when they occur, and how they affect your credit can help you protect and improve your credit score. Types of credit checks Your credit report lists your current and past credit accounts, including personal loans, credit cards, student loans, and mortgages. It also shows ...