The United States is experiencing a worsening debt crisis marked by rising consumer delinquencies, increasing bankruptcies, and a substantial federal budget deficit. In the second quarter of 2025, serious delinquencies on mortgages, auto loans, and student debt surged across all age groups, reaching levels comparable to those seen during the Financial Crisis. Notably, nearly 20% of student loan borrowers aged 50 and older became seriously delinquent on their payments in this period, coinciding with intensified collections efforts under the Trump administration. Bankruptcy filings have also escalated, with 446 large bankruptcies recorded year-to-date, the highest since 2010, and July alone saw 71 filings, the most since the 2020 crisis. The federal budget deficit for July 2025 reached $291.1 billion, the second-largest July deficit on record and a sharp reversal from June’s $27 billion surplus. After ten months of Fiscal Year 2025, the cumulative budget gap stands at $1.63 trillion, ranking as the third-largest deficit in U.S. history, surpassed only by the 2020-2021 deficits. These developments indicate mounting financial stress across multiple sectors of the U.S. economy.