Delinquencies on U.S. consumer debt have surged to levels reminiscent of the Great Financial Crisis, with student loan debt entering serious delinquency at a record 12.9%. Mortgage, auto, and student loan delinquencies rose materially across all age groups in the second quarter of 2025. Credit card delinquency rates among young Americans approached 10% in Q2, while delinquencies among high-income borrowers earning at least $150,000 annually have increased nearly 20% over two years, outpacing other income groups. Total U.S. consumer credit increased to $7.371 billion in June 2025, up from $5.102 billion the previous month but slightly below expectations of $7.5 billion. Revolving credit, which includes credit cards, declined by $1.1 billion in June, marking the second consecutive monthly drop, the first such streak since 2020. Nonrevolving credit rose by $8.4 billion. Credit card debt reached a record $1.21 trillion in Q2 2025, up $440 billion or 57% over the past 4.5 years. "Buy Now, Pay Later" transactions are projected to hit $116.7 billion in 2025, more than doubling the 2022 total. The U.S. national debt has increased by $519 billion since the debt ceiling was lifted in July 2025 and is expected to reach $37.8 trillion by year-end, adding nearly $1.6 trillion in six months. Inflation expectations ticked higher in July, with forecasts of a 0.24% month-over-month rise in headline CPI and a 0.31% increase in core CPI, potentially pushing core inflation to 3.1% year-over-year. Consumer sentiment showed mixed signals: while confidence in current financial situations and credit accessibility improved, optimism about financial futures declined through mid-2025. The Congressional Budget Office estimated the U.S. budget deficit for July 2025 at $289 billion. Home purchase sentiment slightly improved from June lows, but optimism for buying a home remained near its lowest level since January 2025.