The United States is experiencing a deepening debt crisis marked by an unprecedented surge in national debt, rising interest expenses, and increasing consumer delinquencies. As of mid-2025, the US national debt has surpassed $37 trillion, reaching this milestone five years ahead of pre-pandemic forecasts. Since July, the debt has increased by $519 billion, with expectations of hitting $37.8 trillion by the end of 2025. Interest payments on public debt have reached a record $1.2 trillion over the past 12 months, amounting to approximately $3.3 billion per day, making it the second-largest government expenditure after Social Security. The US budget deficit for July 2025 was $291 billion, the second-largest for any July on record, and the fiscal year-to-date deficit stands at $1.63 trillion, the third-largest in history. Household debt has also risen to a record $18.4 trillion in Q2 2025, including $12.9 trillion in mortgage debt, $1.7 trillion in auto loans, $1.6 trillion in student loans, and $1.2 trillion in credit card debt. Credit card debt alone has increased by over $440 billion (57%) in the last 4.5 years. Delinquencies are rising sharply across all income groups and age brackets, with serious delinquencies (90+ days) in credit cards reaching 12.3%, student loans 10.2%, and auto loans 5.0%, the highest in over a decade. Notably, delinquencies among high-income borrowers (earning $150,000+) have surged nearly 20% in two years. Student loan serious delinquency rates have hit a record 13%, with those aged 50 and above experiencing an 18% delinquency rate. The number of large corporate bankruptcies in 2025 has reached 446 year-to-date, the highest in 15 years, with industrials and consumer discretionary sectors most affected. Private sector hiring has slowed to 3.6% in June, levels comparable to the 2020 crisis and below those of the 2001 recession. Youth underemployment has risen to approximately 17%, matching figures from the Great Financial Crisis and 2001 recession. Consumer sentiment is at crisis levels, with the University of Michigan Consumer Sentiment Index dropping to 58.6 in August, comparable to readings during the Great Financial Crisis. Economic confidence indexes have also declined, and 62% of Americans expect unemployment to worsen in the coming year. Despite a steady overall unemployment rate of 4.2% in July, leading indicators suggest a rise in unemployment, particularly among youth aged 16-24, whose unemployment rate has increased to 10%. Recent data also show a shift in consumer behavior, with debit-card spending rising faster than credit for the first time in four years. Efforts to address the debt crisis, including proposed tariffs to pay down the national debt, have fallen short of covering monthly interest payments. The escalating debt burden and associated economic challenges are prompting calls for fiscal restraint and balanced budgeting from policymakers.