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Consumer debt delinquency jumped to 20% in 2025, driven by average credit card interest rates topping 21% and 30-year mortgage rates holding near 6.7%. As wage growth struggles to keep up with inflation, household liquidity is under heavy strain, driving median credit card balances up to $3,100. This spike in defaults poses major headwinds for major consumer credit issuers and Buy Now Pay Later platforms, including Capital One, Bread Financial, and Affirm, all of which currently hold Hold ratings under Seeking Alpha's Quant Rating system.
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