- U.S. consumer loan delinquencies reached a near-decade high. Loan delinquencies in the U.S. rose to 4.8% of household debt in the fourth quarter, the highest level since 2017. This increase was primarily driven by low-income and young borrowers. Mortgage defaults surged in lower-income areas. Student-loan delinquencies hit a record 16.3%. Credit-card and auto loan delinquencies also climbed, reaching 12.7% and 5.2%, respectively. This trend highlights a split economy, even though overall debt rose modestly to $18.8 trillion.
- U.S. consumer loan delinquencies reached 4.8% in Q4, the highest since 2017, driven by low-income and young borrowers.
- Student loan delinquencies hit a record 16.3%, with credit-card and auto loan delinquencies also rising to 12.7% and 5.2%, respectively.
- The rise in student loan delinquencies follows the end of a pause on reporting delinquent federal student loans.
- Increased delinquencies may make it harder for borrowers to obtain mortgages or result in less favorable interest rates.
- More delinquent student loans could dampen credit demand and consumption, particularly among younger borrowers, potentially contributing to stress in the housing sector.
U.S. consumer loan delinquencies reached a near-decade high. Loan delinquencies in the U.S. rose to 4.8% of household debt in the fourth quarter, the highest level since 2017. This increase was primarily driven by low-income and young borrowers. Mortgage defaults surged in lower-income areas. Student-loan delinquencies hit a record 16.3%. Credit-card and auto loan delinquencies also climbed, reaching 12.7% and 5.2%, respectively. This trend highlights a split economy, even though overall debt rose modestly to $18.8 trillion.
Feb 10, 2026, 4:39:20 PM UTC(7 hours ago)
Impact: HighAffected Assets
Sources
From:@DeItaone
US CONSUMER DELINQUENCIES HIT NEAR-DECADE HIGH
U.S. loan delinquencies rose to 4.8% of household debt in Q4, the highest since 2017, driven by low-income and young borrowers.
Mortgage defaults surged in lower-income areas, while student-loan delinquencies hit 16.3%, a record. Credit-card and auto loan delinquencies also climbed to 12.7% and 5.2%, respectively, highlighting a split economy despite overall debt rising modestly to $18.8 trillion.
