1. Americans added $93 billion in debt in Q4 2024, half from credit cards. 2. Total credit card balances reached $1.2 trillion, a 7% annual increase. 3. Delinquent credit-card debt rose to nearly 9%, amidst high inflation pressures. 4. Car loan delinquencies also increased, hitting the highest levels since 2010. 5. Consumers plan to cut spending due to inflation and expected tariff increases.
Increasing debt and delinquency rates suggest financial strain on consumers, potentially reducing spending. A previous spike in credit defaults negatively impacted financial companies.
The article highlights prevailing debt issues that can affect lending businesses like TREE significantly. Financial health of consumers directly impacts credit card demand, critical for TREE's operations.
Immediate financial concerns may cause consumers to decrease spending quickly. Past examples show rapid shifts can occur in consumer behavior due to economic stress.