Rising Debt Payments Signal Difficult Era of High Borrowing Costs for US Households

Interest payments on non-mortgage debt now rival mortgage payments as a financial burden for US households. This signals a difficult era of high borrowing costs.

Higher monthly debt payments are leaving consumers more exposed to potential economic contractions.

Many families have taken on substantial debt loads in recent years, often at higher interest rates. This debt can be a significant financial strain.

Delinquencies on loans like credit cards and auto debt have hit decade highs as rates rise, posing risks to the broader economy.

The high cost of debt shapes perceptions of prosperity and could be a drag on the economy and President Biden's reelection bid.