Credit & Debt

Total interest on the national debt is poised to become the priciest part of the federal budget, outstripping spending on Medicare and Social Security.

Federal student loan payments and interest accrual are set to resume soon after a three-year pause regardless of how the Supreme Court rules on President Biden's loan forgiveness plan.

Inflation is pushing many Americans to cut back on summer vacations and leisure activities, according to a recent survey by ScoreSense. Some have also turned to personal loans to cover expenses.

The student loan payment pause enacted during the COVID-19 pandemic caused many borrowers to collect other forms of debt, according to a study. The president’s plan, which has been criticized by Congress, is under review by the Supreme Court.

A report by CreditCards.com found that Mississippi had the highest credit card debt burden in the U.S. when factoring in household income while Massachusetts had the lowest.

The Federal Reserve warned in its semi-annual monetary report to Congress that tightening credit conditions could weigh on the U.S. economy this year.

While investors are optimistic the Federal Reserve will pause interest rates this month, the move is unlikely to bring relief to stretched consumers holding credit card debt and variable rate loans.

Fitch Ratings said Friday that it could still downgrade the U.S. credit rating after the most recent debt-limit debacle between Democrats and Republicans.

The most recent debt ceiling deal would end the federal student loan payment pause after Aug. 30. But Biden’s student loan forgiveness plan is still under review by the Supreme Court. Here’s what you need to know.

Under the student loan deal negotiated by President Biden and House Speaker Kevin McCarthy, the federal student loan payment pause will end in August.

If the government fails to raise the debt ceiling, a default on its obligations could trigger a major drop in home sales, an increase in mortgage rates and a recession, according to a forecast by Zillow.

Fitch Ratings put the United States' AAA credit rating on negative watch, citing brinksmanship and increased partisanship over raising or suspending debt ceiling.

If President Biden and Republicans fail to strike a deal to raise the debt ceiling, it could trigger a deep recession that sends unemployment above 8%.

Treasury Secretary Janet Yellen warned the U.S. could default on its financial obligations by early June, adding to the pressure on Washington negotiators.

Social Security recipients, veterans and would-be homeowners could be heavily impacted if President Biden and Congress fail to raise the debt ceiling.

Consumer debt reached a record of $17.05 trillion in Q1 2023. Many Americans still deal with high inflation and are seeking help from their financial institutions, reports say.

The chances of the U.S. defaulting on its debt are low, but experts are warning that financial markets and the economy are still facing a wall of worry as lawmakers duke it out.

The U.S. housing market could tumble into a deep freeze if Congress fails to raise the debt ceiling by June 1 and defaults on its financial obligations.

Federal Reserve data released Monday is expected to show that U.S. households are carrying $1 trillion in credit card debt, the highest level on record.

Senate Majority Leader Chuck Schumer is directing his Democratic caucus to alarm constituents with the claim that a debt default could cause a massive recession and unemployment.