Equifax National Market Pulse Data Shows U.S. Consumers Continuing to Spend, Avoiding Delinquency

Second Quarter 2025 Consumer Credit Trends Indicate Bank Card Delinquencies Continuing Downward Trend

ATLANTA, July 30, 2025 /PRNewswire/ -- Equifax® (NYSE: EFX) has released its Market Pulse Second Quarter U.S. Consumer Credit Trends, which includes U.S. national consumer credit data and trends through June 2025 sourced from Equifax data. According to Equifax, delinquency on total U.S. consumer debt was 1.5% in June, steady from 1.5% in May and April, marking a 0.2% increase from the end of the first quarter of 2025. Total consumer debt reached $17.86 trillion in June, up from $17.80 trillion in May and $17.73 trillion in April.

"At the surface level, our second quarter data showed that consumers are continuing to spend and avoid delinquency. However, there's a growing K-shaped split in the consumer landscape, with subprime borrowers falling behind," said Tom O'Neill, Market Pulse Advisor at Equifax. "The share of credit card debt held by non-prime borrowers has now eclipsed pre-pandemic levels. In the months ahead, we'll continue to monitor whether affordability constraints continue to weigh heavily on non-prime borrowers and how this impacts the holistic credit picture."

Equifax data shows that many consumers are continuing to spend across categories and that delinquency is flat, but subprime borrowers show signs of strain. In the pandemic period, the share of total bankcard debt held by subprime borrowers declined from 20.5% in early January 2020 to a low of 14.7% by May 2021. Pandemic stimulus, dips in discretionary spend and the pause on student loan payments contributed to subprime borrowers' ability to manage bankcard loans. As of May 2025, subprime borrowers hold a 22.1% share of all bankcard debt, which is a 3.5% increase from May 2024, and a 50.9% increase from its low point in May 2021. However, this is only a 7.8% increase for this category over the early pandemic level in January 2020. The total bankcard debt for this group has also jumped 135% to $233.1B in May 2025 compared to $99.4B in May 2021, while total bankcard debt for all consumers has grown just 54%.

Key Insights

1. Student Loan Balances Sharply Decrease Year-Over-Year
   
   In the second quarter, student loan debt represents the most acute example of credit deterioration across all major lending sectors - mortgage, auto loans, credit cards, student loans and personal loans. Due to the distribution of income tax refunds and elapsed time from the winter holidays, the second quarter is typically a period when consumers pay off debts. However, after a five-year suspension period, reporting on delinquent student loan borrowers resumed in 2025.
   
   These policy changes have an outsized impact on the second quarter Equifax Market Pulse results. Severe delinquency – debt that is 90+ days past due or in bankruptcy – doubled in March from 6.48% to 13.49%, rose to 18.24% in April, and stood at 18.73% in May. In June, the delinquency rate on student loans in active repayment - not including loans in deferment or forbearance - fell slightly to 17.95%. Overall, outstanding student loan debt dropped to $1.33 trillion in June 2025, a sharp 11% decrease year- over-year. The number of active accounts fell 15.6% to 146.7 million.
   
   
2. Bankcard Delinquency and Write-offs Stabilize
   
   Bankcard credit (traditional credit cards) balances grew to $1.07 trillion in June – up 4.2% year-over year, with total bankcard accounts up 5.7% year-over-year to 581.6 million. Bankcard delinquency and write-offs have shown signs of stabilization. Delinquency fell 4.4% year-over-year to 2.79% in June 2025. Delinquency rates have trended downward since reaching a peak of 3.22% in November 2024. Write-offs fell to 57.4 basis points in June 2025, which is 3.7 basis points lower than June 2024.
   
   
3. Auto Credit: Leases Soar, Loans Show Weakness
   
   Auto loan and lease debt grew to $1.68 trillion in June, up 0.2% from May and 1.7% year-over- year. Leases surged, with balances up 13.6%, while auto loan balances rose just 1.1%. Lease delinquencies dropped to 0.42%, while loan delinquencies edged up to 1.5%.

As borrowers contend with high vehicle prices and elevated interest rates, many are opting for short-term leases over long-term loans. The health of lease accounts has been strong, with falling delinquencies and lower write-offs. In contrast, auto loans appear stagnant, with marginal account and balance growth and a slight uptick in delinquencies.

Month-Over-Month Results:

Total Consumer Debt

Mortgage Debt (Including Home Equity Loans)

Non-Mortgage Debt (Auto Loans, Bankcard and Private Label Credit Card, Student Loans and Personal Loans)

Equifax has been tracking U.S. National Consumer Credit Trends for more than 20 years. Monthly reports can be found on Equifax.com. These reports track originations, balances and delinquencies on U.S. consumer mortgages, auto loans and leases, student loans, bankcards and private label credit cards, and personal loans. To explore Equifax tools that deliver U.S. National Consumer Credit Trends data and key market metrics click here.

ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com.

FOR MORE INFORMATION:
Tiffany Smith for Equifax
[email protected]

SOURCE Equifax Inc.