Federal Reserve Bank of New York

Americans Juggle Multiple Debts Amid Record Highs

RadCred's platform data reveals complexity behind the headline numbers:

• 63% of RadCred users now carry balances on at least three types of debt (credit cards, mortgages, or student loans), up 11 percentage points year-over-year.
• 44% report that monthly payments for all debts make up more than 35% of their net income.
• 69% admit to using credit for unavoidable essentials: groceries, rent, utilities.
• 28% have experienced a drop of 40 or more FICO points since early 2024.
• 59% are currently researching or applying for debt consolidation

Federal data support these trends. Mortgage balances rose $137 billion to $13.07 trillion in Q3, while credit card debt climbed $24 billion to $1.23 trillion, a record high. Student loan

"The $18.6 trillion figure tells only part of the story. Our data shows people aren't taking on debt recklessly, they're covering rising housing costs, medical bills, and expenses wages can't match. The real crisis is how many are trapped managing multiple high-interest debts with no clear path out", said Alex Zadorian, CEO of RadCred.

Delinquencies Rising, Credit Access Tightening

As delinquencies rise, traditional banks tighten lending standards, pushing struggling borrowers toward higher-cost options. The Federal Reserve reports that 4.5% of all outstanding debt is currently delinquent.

Credit card delinquency rates stabilized at 3.05% nationally but remain near decade highs. Student loan delinquencies surged as federal collections resumed, with 14.3% of accounts entering delinquency during Q3, nearly double the pre-pandemic rate.

"Borrowers are caught between rising debt and shrinking credit access. When credit scores

Alternative Lending as Bridge Solution

RadCred's platform shows demand for consolidation loans up 34% in six months. The company's AI system evaluates over 100 alternative data points, including income stability, payment history, and employment patterns, enabling approval for borrowers that traditional banks reject.

Americans now spend more on debt service than at any time since 2008. RadCred's findings highlight the need for responsible, tech-based alternative platforms to reduce bias in lending and improve credit access

About RadCred

RadCred is a U.S.-based AI-powered loan marketplace connecting borrowers with licensed lenders offering personal, installment, and debt consolidation loans. By evaluating alternative financial data beyond credit scores, RadCred expands access for borrowers managing multiple debts.

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Disclaimer

RadCred is not a direct lender and does not make credit decisions. Loan terms, rates, and approvals depend on individual lenders and state regulations. This release is for informational purposes only. Consumers should review all lender disclosures before accepting offers.