Credit Sesame’s personal finance news roundup, April 12, 2025. Stories, news, politics, and events impacting personal finance during the past week.
Credit card balances inch upward despite dip in total consumer debt
Consumer debt declined at a seasonally adjusted annual rate of 0.2% in February 2025. While modest, this marked only the fourth month of decline since 2020. The pullback in borrowing may signal rising consumer unease about the economy. However, revolving debt, primarily consisting of credit card balances, ticked up at a seasonally adjusted annual rate of 0.1%. In contrast, non-revolving debt, such as installment loans, fell at a rate of 0.3%. Revolving debt has outpaced non-revolving debt in recent years, partly due to the higher interest rates typically associated with it. See details at FederalReserve.gov.
Signs of distress emerge in credit card repayment trends
The Federal Reserve Bank of Philadelphia reported that recent credit card data reveals growing signs of “consumer distress.” The percentage of credit card accounts 90 days or more past due has reached its highest level in the 12 years the Fed has tracked this metric. Even many consumers who stay current on payments find it challenging to keep pace. The share of customers making only the minimum monthly payments is also at a record high, making it harder to reduce outstanding balances. With high interest rates and ongoing charges, debt balances may continue rising for those making minimum payments. See article at PYMNTs.com.
Debit and check fraud drive most financial losses
A Federal Reserve survey of risk officers found that debit cards accounted for the largest share of fraud-related losses reported by U.S. financial institutions last year, making up 39%. Check fraud followed closely at 30%, underscoring the vulnerability of checking accounts. In contrast, credit card fraud accounted for just 5% of losses. While debit cards lead in total fraud losses, check fraud is the fastest-growing category, with attempted check fraud rising by 10% last year. See article at ABA.com.
Tariff fears ripple across stocks and bonds alike
Typically, U.S. Treasury bonds serve as a safe haven when stocks falter. But the global anxiety over tariffs has driven bond prices down as well. One financial firm described the trend as a “sell America trade,” reflecting concerns about U.S. isolation from the global financial system. Bonds are particularly sensitive to inflation, and fears that tariffs could drive inflation higher are fueling the ongoing bond market sell-off. See article at Reuters.com.
Temporary tariff pause brings relief and more questions
In a new tariff development, President Trump announced a 90-day delay in implementing reciprocal tariffs for all countries except China. The stock market initially surged in response but gave up gains the following day. The future remains uncertain once the pause ends, leaving investors wary and businesses struggling to navigate supply chain decisions amid ongoing tariff unpredictability. See article at Yahoo.com.
Consumer inflation eases slightly in March 2025
The Consumer Price Index (CPI) declined by 0.1% in March, though it remained 2.4% higher compared to a year earlier. Core CPI, which excludes food and energy prices, rose by 0.1% for the month and 2.8% over the past 12 months. March prices did not yet reflect the effects of new tariffs and may have been influenced by growing concerns over a slowdown in economic activity. See CPI report at BLS.gov.
Producer prices decline, easing inflation concerns
The Producer Price Index (PPI), which had been rising recently, fell by 0.4% in March 2025. This lowered the year-over-year increase to 2.7%—still above the 2.1% low from August and September last year, but an improvement from February’s 3.2%. The PPI will be an important index to monitor if new tariffs are implemented. See PPI report at BLS.gov.
Mortgage rates hold steady amid broader market swings
While other interest rates, such as bond yields, have been volatile in recent weeks, mortgage rates have remained notably stable. The average 30-year mortgage rate dipped by two basis points last week to 6.62%, marking six straight weeks within a narrow 5-basis-point range. The 15-year rate also held steady at 5.82% for the second week in a row. Although mortgage rates remain elevated compared to late September 2024 lows, the recent consistency offers some predictability for prospective homebuyers. See rate data at FreddieMac.com.
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