Changing Consumer Spending Habits in 2025

A Bankrate survey found that over half of Americans plan to spend less on entertainment, travel, and dining out in 2025 compared to last year. Concerns about a potential recession and high household debt are contributing to the decrease in nonessential spending.

Rising Credit Card Delinquencies

Credit card delinquencies are on the rise, with nearly a fifth of borrowers maxed-out, according to a report from the New York Federal Reserve. Household debt rose by $184 billion in the first quarter of 2024, reaching $17.69 trillion. Delinquency rates increased for credit card and auto loans, with younger borrowers and those in low-income areas being more affected.