Marketplace Should we fret over rising household debt?
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Aug 6, 2025 Household debt is surging, with a notable rise in student loan delinquencies, but experts remain optimistic. Audi is considering building a U.S. factory to circumvent tariffs, while the decline in international students raises economic concerns. The episode also examines community benefits agreements in development, highlighting Nashville's activism. Additionally, it takes a look at the challenges in the cattle market amid record-high beef prices and explores how YouTube is reshaping the culinary landscape for chefs.
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Rising Household Debt Overview
- Americans hold a staggering $18.4 trillion in consumer debt, including credit cards, auto loans, mortgages, and student loans.
- While delinquencies are rising, especially on student loans, the overall debt-to-income ratio remains low historically.
Debt Growth Signals Spending
- Consumers borrowing more often reflects higher spending, signaling economic growth and higher card usage.
- Despite slightly elevated delinquencies, banks remain unconcerned for now.
Struggling with Credit Card Debt
- Nearly half of American households struggle to keep up with credit card minimum payments but do not necessarily miss payments.
- Struggling means scraping by to meet payments, not defaulting or delinquencies yet.