US Edition
Inflation-Driven Debt Could Sink the Economy
UNITED STATES, JUL 18 – Rising federal deficits and inflation have pushed delinquency rates in student loans and credit cards to record highs, increasing risks of defaults and borrowing costs, experts say.
- Rising borrowing costs amid persistent inflation have increased consumer debt struggles in the U.S. and Brazil in 2025.
- This trend follows rising auto loan delinquency rates, high credit card defaults, and widespread use of buy now, pay later loans without transparency.
- Brazil's economy grew 3.4% in 2024 but is forecast to slow to 2.3% growth in 2025 amid a 92% public debt-to-GDP ratio and a budget deficit of 8.5% of GDP.
- Consumer finance analyst Matt Schulz noted that rising auto loan delinquencies signal people are struggling, while nearly 25% of $1.6 trillion student loans risk default according to Investopedia.
- These conditions imply tighter financial constraints for consumers and governments, suggesting cautious investment and the need for reforms to sustain economic stability.
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16 Articles
16 Articles
Grand Forks HeraldReposted by 
West Central Tribune
West Central TribuneFroma Harrop: Inflation-driven debt could sink economy
Can you hear the canary in the economy's coal mine singing her heart out? You know that we are headed for trouble when some masses start buying groceries on the installment plan. That is the business model behind the popular "Buy Now, Pay Later" (BNPL) borrowing platforms — loans that spread out purchases into four payments. Troubles are growing in several credit sectors — in car loans, in credit card debt, in student loans. Inflation driven by …
Coverage Details
Total News Sources16
Leaning Left3Leaning Right3Center9Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 20%
C 60%
R 20%
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