📍The risk of Americans defaulting on their debts is at an all-time high

Credit card delinquency has risen to approximately 12-13%—near the peak levels after the 2008 crisis. Student loans have returned, from nearly 0% during 2021–2023 (thanks to student debt forgiveness policies), surging back to around 10% in just over a year.
Mortgage rates remain around ~1%, but they are also at the highest since post-COVID 2022. The largest debt in the financial system has not yet broken, as most borrowers are still locked into low interest rates of 2-3%.
-> Thanks to mortgages, the credit system has been stabilized and has not fallen into a domino effect despite many warning signs over the past three years.