(C) BoingBoing
This story was originally published by BoingBoing and is unaltered.
. . . . . . . . . .
"I will retire with debt" — credit scores drop at fastest rate since Great Recession [1]
['Ellsworth Toohey']
Date: 2025-09-16
Americans are experiencing the biggest credit score decline since the Great Recession. FICO data shows a two-point drop in the national average this year. The drop reflects rising financial strain as more borrowers miss payments on car loans, credit cards, and personal loans.
Gen Z has been hit hardest, with a three-point average drop — the largest since 2020 among age groups.
"We've seen a K-shaped economy where those with wealth tied to stock market portfolios and rising home values are doing well and others are struggling with high rates and affordability problems," Tommy Lee, senior director at FICO, told CNN.
The outlook is worse for young Americans as student loan payments restart. FICO reports 34% of Gen Zers hold student loans — double the national average. Since February, 6.1 million borrowers faced delinquencies, pushing the rate to a record 29% for those with payments due. Many, like Philadelphia nurse Sue Murphy, are forced to take second jobs. She said, "It almost feels like it doesn't pay to be an honest hardworking citizen in this country anymore."
Previously:
• Families go broke for Disneyland: Are magical memories worth the financial misery?
• Consumer debt is 'basically optional,' but debt collectors rely on you not knowing that
• The origins of student debt
[END]
---
[1] Url:
https://boingboing.net/2025/09/16/i-will-retire-with-debt-credit-scores-drop-at-fastest-rate-since-great-recession.html
Published and (C) by BoingBoing
Content appears here under this condition or license: Creative Commons BY-NC-SA 3.0.
via Magical.Fish Gopher News Feeds:
gopher://magical.fish/1/feeds/news/boingboing/
