Latest news with #Rossman
The Hill
22-05-2025
- Business
- The Hill
Many Americans plan to slash travel, entertainment spending in 2025: Survey
More than half of Americans expect to spend less on fun expenses — like entertainment, travel and eating out — this year, according to a new Bankrate poll, published earlier this week, found about 54 percent of respondents said they plan to slash their nonessential spending in 2025, up from 49 percent last year. Bankrate senior industry analyst Ted Rossman said the pandemic-era trend of 'doom spending' — embracing unique, exciting experiences because it felt like life was too short — is ending. 'We're finally seeing a limit to the 'you only live once' urge to splurge,' Rossman said. This survey revealed that 38 percent expect a decrease in their travel spending, and 39 percent expect to spend less on dining out and live entertainment. President Trump's latest tariffs have stoked fears of a recession, and household debt hit a record $18.2 trillion in the first quarter of 2025, according to the Federal Reserve Bank of New York. A large majority of U.S. voters, 82 percent, are worried about a potential recession under the Trump administration, according to an exclusive NewsNation/Decision Desk HQ poll conducted in April. 'The cumulative effects of inflation and high interest rates have been straining households, contributing to record levels of credit card debt and causing consumer sentiment to plummet,' Rossman said. Conversely, one-third of respondents said they plan to have more discretionary spending this year, with 22 percent opting to fund travel, 19 percent dining out and 15 percent entertainment. The cost of travel is down from last year, according to Bankrate. That includes the price of gas, car rentals, airfare and hotels. But survey responses showed it might not be just finances keeping consumers from cashing out on experiences. While 65 percent said they can't afford it, 23 percent said they're just not interested in travel and 16 percent said it's too much of a hassle. The Bankrate analysis, including figures from YouGov, was conducted April 2-4 among 2,484 U.S. adults.
Yahoo
21-05-2025
- Business
- Yahoo
54% of Americans plan to slash travel, entertainment spending: Survey
(NewsNation) — More than half of Americans expect to spend less on fun expenses — like entertainment, travel and eating out — this year, according to a survey from Bankrate. Around 54% of respondents said they plan to slash their nonessential spending in 2025, up from 49% last year. Bankrate senior industry analyst Ted Rossman said the pandemic-era trend of 'doom spending' — embracing unique, exciting experiences because it felt like life was too short — is ending. Drivers could see cheapest Memorial Day gas prices since 2021 'We're finally seeing a limit to the 'you only live once' urge to splurge,' Rossman said. This survey revealed that 38% expect a decrease in their travel spending, and 39% expect to spend less on dining out and live entertainment. President Donald Trump's tariffs have stoked fears of a recession, and household debt hit a record $18.2 trillion in the first quarter of 2025, according to the Federal Reserve Bank of New York. A large majority of U.S. voters, 82%, are worried about a potential recession under the Trump administration, according to an exclusive NewsNation/Decision Desk HQ poll conducted in April. Walmart responds to Trump comment that retailer should 'eat the tariffs' ' The cumulative effects of inflation and high interest rates have been straining households, contributing to record levels of credit card debt and causing consumer sentiment to plummet ,' Rossman said. Conversely, one-third of respondents said they plan to have more discretionary spending this year, with 22% opting to fund travel, 19% dining out and 15% entertainment. The cost of travel is down from last year, according to Bankrate. That includes the price of gas, car rentals, airfare and hotels. But survey responses showed it might not be just finances keeping consumers from cashing out on experiences. While 65% said they can't afford it, 23% said they're just not interested in travel and 16% said it's too much of a hassle. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
19-05-2025
- Business
- Yahoo
Americans' Consumer Debt Hits All-Time High of $18.2 Trillion, Experts Say Some Borrowers 'Will Have A Much More Difficult Time Getting Credit' Going Forward
American consumer debt hit $18.2 trillion in the Q1 2025, according to the Federal Reserve Bank of New York While credit card and auto loan balances are both declining, student loan debt and mortgage balances have increased Student loan debt was also identified as the primary driver behind delinquent debt, which increased 4.3% over the last quarter Americans' consumer debt hit an all-time high in the Q1 2025, according to the Federal Reserve Bank of New York's "Quarterly Report on Household Debt and Credit." The report, which was released Tuesday, says that household debt is at $18.2 trillion, up $167 billion since Q4 2024. In two categories, credit card balances and auto loan balances, Americans are actually lowering their debt loads. According to the report, credit card balances fell by $29 billion and auto loan balances decreased by $13 billion. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – However, Ted Rossman, a senior industry analyst at Bankrate, told CNN, "Don't be fooled by the modest decrease[s]. Credit card balanc es and interest rates remain near record highs." According to Rossman, credit card balances are 54% higher than they were four years ago, and auto loan balances have gone up by 19% over the same period. The long-term upward trend of credit balances is unsurprising. The NY Fed's data does not account for inflation, or factor in things like population growth, the rise of e-commerce, or the strength of consumer spending. What is surprising to analysts and experts, however, is the drop in auto loan balances. These fell for the first time since 2011, according to CNN. Matt Schultz, chief consumer finance analyst at LendingTree, explained the phenomenon to CNN. "I think it's a combination of people not buying [cars] because of high interest rates and high prices and also just the amount of uncertainty that we have had in the economy the last few months," he said. "That may have spurred people to hunker down a little bit." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Two other categories of consumer debt, student loan balances and mortgage balances, saw an increase in debt loads. Student loan balances grew by $16 billion to $1.63 trillion, and mortgage balances went up by $199 billion to $12.8 trillion. Aggregate delinquency rates also rose this quarter, with 4.3% of debt now in some stage of delinquency. Student loans are one of the chief drivers of delinquent debt. After a 3.5 year pause on payments and the end of President Joe Biden's one-year "on-ramp" extension, student loans payments have resumed in full as of Sept. 30, and missed payments now affect credit reports. According to the NY Fed's new report, student loan delinquencies have jumped from 1% to 7.74% in the Q1. While half of the newly delinquent borrowers already had subprime credit scores, 2.4 million others had scores of above 620 and saw them drop more than 140 points. Charlie Wise, head of global research and consulting at TransUnion, told CNN this could have severe impacts on the average borrower. "Consumers who previously would have had very good access to most credit products, including mortgages, now will have a much more difficult time getting credit — if at all," he said. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Maximize saving for your retirement and cut down on taxes: . Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Americans' Consumer Debt Hits All-Time High of $18.2 Trillion, Experts Say Some Borrowers 'Will Have A Much More Difficult Time Getting Credit' Going Forward originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
15-05-2025
- Business
- The Hill
Debt shifts: Credit cards, auto loans cool while student loans heat up
Americans pumped the brakes on credit card and car debt to start the year, but with missed student loan payments now showing up on credit reports, new data reveals a fresh financial headache is already setting in. Total household debt rose by $167 billion to $18.2 trillion in the first quarter — a jump driven by mortgage debt, according to the latest quarterly report from the Federal Reserve Bank of New York. Credit card balances dropped by $29 billion and auto loan debt fell by $13 billion from the previous quarter. Meanwhile, student loan balances hit a record $1.63 trillion, and now that past-due loans are hitting credit reports for the first time in five years, delinquencies are spiking. In the first quarter of 2025, about 8 percent of student loan debt fell into serious delinquency, meaning 90 days or more past due. That's up from less than 1 percent a year earlier but roughly in line with the pre-pandemic norm. A New York Fed analysis of borrowers, rather than balances, found that nearly a quarter (23.7 percent) of borrowers who were required to make payments were behind on their student loans. Missed payments are already dragging down the credit scores of millions of Americans, driving up borrowing costs and making it harder to get approved for loans. According to the New York Fed, more than 2.2 million student loan borrowers who became newly delinquent saw their credit scores drop more than 100 points and more than one million saw drops of at least 150 points. The highest rates of student loan delinquency were in southern states, led by Mississippi and Alabama. Earlier this month, the Education Department resumed involuntary collections, which means borrowers in default could face garnished tax refunds and reduced Social Security payments. Credit card debt tends to dip after the holidays as consumers pull back on spending, so the latest drop is likely seasonal, not a sign that Americans have tackled their underlying debt issues. 'Don't be fooled by the modest decrease,' Ted Rossman, Bankrate's senior industry analyst, said in a statement. 'Credit card balances and interest rates remain near record highs, and Americans' total consumer debt load is a record $18.2 trillion.' Perhaps more concerning: The share of credit card debt that is 90 or more days delinquent climbed to 12.3 percent in the first quarter, the highest level since 2011. Rossman pointed out that credit card balances are 54 percent higher than they were four years ago and auto loan balances have risen by 19 percent. Americans now owe $1.64 trillion in auto loans, making it the second-largest category of consumer debt after mortgages. Rising delinquencies and elevated interest rates have sparked concerns about an auto loan bubble, but the New York Fed's latest analysis suggests the situation remains under control. Transition rates into serious delinquency have 'leveled off' for auto loans over the past year, Daniel Mangrum, research economist at the New York Fed, said in a release. The first quarter decline in auto loan balances marked only the second time since 2011 that they've dropped from the previous quarter. However, it remains to be seen whether the tariff-driven car buying surge will push up auto debt in the second quarter.
Yahoo
14-05-2025
- Business
- Yahoo
Debt shifts: Credit cards, auto loans cool while student loans heat up
(NewsNation) — Americans pumped the brakes on credit card and car debt to start the year, but with missed student loan payments now showing up on credit reports, new data reveals a fresh financial headache is already setting in. Total household debt rose by $167 billion to $18.2 trillion in the first quarter — a jump driven by mortgage debt, according to the latest quarterly report from the Federal Reserve Bank of New York. Credit card balances dropped by $29 billion and auto loan debt fell by $13 billion from the previous quarter. Meanwhile, student loan balances hit a record $1.63 trillion, and now that past-due loans are hitting credit reports for the first time in five years, delinquencies are spiking. In the first quarter of 2025, about 8% of student loan debt fell into serious delinquency, meaning 90 days or more past due. That's up from less than 1% a year earlier but roughly in line with the pre-pandemic norm. A new era for student loans begins with garnished wages on the table A New York Fed analysis of borrowers, rather than balances, found that nearly a quarter (23.7%) of borrowers who were required to make payments were behind on their student loans. Missed payments are already dragging down the credit scores of millions of Americans, driving up borrowing costs and making it harder to get approved for loans. According to the New York Fed, more than 2.2 million student loan borrowers who became newly delinquent saw their credit scores drop more than 100 points and more than one million saw drops of at least 150 points. The highest rates of student loan delinquency were in southern states, led by Mississippi and Alabama. Earlier this month, the Education Department resumed involuntary collections, which means borrowers in default could face garnished tax refunds and reduced Social Security payments. Credit card debt tends to dip after the holidays as consumers pull back on spending, so the latest drop is likely seasonal, not a sign that Americans have tackled their underlying debt issues. 'Don't be fooled by the modest decrease,' Ted Rossman, Bankrate's senior industry analyst, said in a statement. 'Credit card balances and interest rates remain near record highs, and Americans' total consumer debt load is a record $18.2 trillion.' Perhaps more concerning: The share of credit card debt that is 90 or more days delinquent climbed to 12.3% in the first quarter, the highest level since 2011. Rossman pointed out that credit card balances are 54% higher than they were four years ago and auto loan balances have risen by 19%. Is there a car loan bubble? Here's what to know Americans now owe $1.64 trillion in auto loans, making it the second-largest category of consumer debt after mortgages. Rising delinquencies and elevated interest rates have sparked concerns about an auto loan bubble, but the New York Fed's latest analysis suggests the situation remains under control. Transition rates into serious delinquency have 'leveled off' for auto loans over the past year, Daniel Mangrum, research economist at the New York Fed, said in a release. The first quarter decline in auto loan balances marked only the second time since 2011 that they've dropped from the previous quarter. However, it remains to be seen whether the tariff-driven car buying surge will push up auto debt in the second quarter. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
