Anna Helhoski

But beginning in January of this year, federal student loan servicers, those are the companies that manage federal student loans, began reporting late payments to credit bureaus. The Education Department says that more than 5 million borrowers are in default, while 4 million are in late-stage delinquency.

The Federal Reserve Bank of New York projects that more than 9 million people will be reported to credit bureaus for late payments by the end of June. Now, here's the most recent bad news. Beginning May 5th, the Education Department is going to start involuntary collection. Which means student loan borrowers in default will see tax refunds and even Social Security payments reduced or withheld.

The Federal Reserve Bank of New York projects that more than 9 million people will be reported to credit bureaus for late payments by the end of June. Now, here's the most recent bad news. Beginning May 5th, the Education Department is going to start involuntary collection. Which means student loan borrowers in default will see tax refunds and even Social Security payments reduced or withheld.

The Federal Reserve Bank of New York projects that more than 9 million people will be reported to credit bureaus for late payments by the end of June. Now, here's the most recent bad news. Beginning May 5th, the Education Department is going to start involuntary collection. Which means student loan borrowers in default will see tax refunds and even Social Security payments reduced or withheld.

And beginning the summer, could see their wages garnished if they don't catch up with past payments due.

And beginning the summer, could see their wages garnished if they don't catch up with past payments due.

And beginning the summer, could see their wages garnished if they don't catch up with past payments due.

Some recent data from Fitch Ratings shows auto loan delinquencies are up to their highest rate in decades. And as we might expect, those with prime borrower scores are doing better than subprime. Now, that means that borrowers with higher credit scores aren't delinquent on their debts as much as those with lower scores. That's a pretty common trend when delinquencies rise.

Some recent data from Fitch Ratings shows auto loan delinquencies are up to their highest rate in decades. And as we might expect, those with prime borrower scores are doing better than subprime. Now, that means that borrowers with higher credit scores aren't delinquent on their debts as much as those with lower scores. That's a pretty common trend when delinquencies rise.

Some recent data from Fitch Ratings shows auto loan delinquencies are up to their highest rate in decades. And as we might expect, those with prime borrower scores are doing better than subprime. Now, that means that borrowers with higher credit scores aren't delinquent on their debts as much as those with lower scores. That's a pretty common trend when delinquencies rise.

One last one on a credit card debt.

One last one on a credit card debt.

One last one on a credit card debt.

The Federal Reserve reports that credit card delinquencies fell to record lows at the start of the pandemic, but quickly returned to pre-pandemic levels by the start of 2023. And it's been rising pretty steadily ever since. And the Fed expects that to continue. All right, we covered a lot of ground, but it pretty much all adds up to a bleak outlook for borrowers with financial insecurity.

The Federal Reserve reports that credit card delinquencies fell to record lows at the start of the pandemic, but quickly returned to pre-pandemic levels by the start of 2023. And it's been rising pretty steadily ever since. And the Fed expects that to continue. All right, we covered a lot of ground, but it pretty much all adds up to a bleak outlook for borrowers with financial insecurity.

The Federal Reserve reports that credit card delinquencies fell to record lows at the start of the pandemic, but quickly returned to pre-pandemic levels by the start of 2023. And it's been rising pretty steadily ever since. And the Fed expects that to continue. All right, we covered a lot of ground, but it pretty much all adds up to a bleak outlook for borrowers with financial insecurity.

Conditions could also be exacerbated, and even more borrowers could be at risk of delinquencies if prices rise due to tariffs, which economists expect. Now, I'll be keeping an eye on consumer behavior data as it trickles out in the next six months to a year, and we can circle back when the picture is clearer.

Conditions could also be exacerbated, and even more borrowers could be at risk of delinquencies if prices rise due to tariffs, which economists expect. Now, I'll be keeping an eye on consumer behavior data as it trickles out in the next six months to a year, and we can circle back when the picture is clearer.

Conditions could also be exacerbated, and even more borrowers could be at risk of delinquencies if prices rise due to tariffs, which economists expect. Now, I'll be keeping an eye on consumer behavior data as it trickles out in the next six months to a year, and we can circle back when the picture is clearer.

Sean, how should people generally prioritize which debt to pay off first if they can't make all of their payments on time?