Student loan delinquencies are exploding—and that’s just the tip of the iceberg. With $18.2 trillion in household debt and credit defaults rising, is the U.S. consumer about to collapse? Taylor Kenny breaks down the rising risk to banks, and how YOU can prepare before it’s too late.

According to recent data, household debt in the U.S. has ballooned to a record-breaking $18.2 trillion. But this isn’t just about big numbers on a balance sheet. It’s a warning. Americans are defaulting on their student loans, falling behind on auto loans, and racking up credit card delinquencies at alarming rates. What we’re seeing isn’t a blip. It’s the foundation of the consumer economy beginning to fracture.

Student Loans Return — And So Do the Consequences

After a four-year pause, federal student loan payments have resumed. For millions of Americans, that means payments of over $500 per month are back on the table. According to the New York Fed, 8% of all student loans are now delinquent—a sharp rise from under 1% just a year ago. And the reality is far worse: nearly one in four borrowers is either delinquent or in outright default.

This isn’t just a personal financial crisis. It’s a systemic one. When people can’t keep up with student loan payments, it’s often a signal that they’re falling behind elsewhere too. That means banks holding consumer credit are exposed across multiple fronts: credit cards, mortgages, auto loans, and more.

Credit Scores Are Crashing

The downstream effects are substantial. Borrowers in delinquency risk losing as much as 171 points from their credit scores, which could jeopardize their ability to get a mortgage, secure employment, or access future loans. For a financial system built on credit, this kind of widespread degradation in creditworthiness is an ominous sign.

Taylor Kenney, a leading voice from ITM Trading, put it bluntly: “This is what a slow-motion collapse looks like—except now it’s accelerating.”

Banks Are Starting to Feel It

As defaults rise, the risk to banks grows. According to American Banker, soaring student loan delinquencies are already flashing red on the risk dashboard. And it’s not just student debt: delinquencies across all consumer loans nearly doubled year-over-year in Q1.

If student loans are the canary in the coal mine, then what comes next could be a wave of distress across all consumer lending. That has implications not just for individual borrowers, but for the financial system itself.

Real Estate: The Last Domino?

Even the housing market, one of the last pillars of perceived financial strength, is showing early signs of instability. Foreclosures are starting to tick up. Homeowners who were once able to sell quickly for profit are now watching a $40,000 gap grow between asking and actual sale prices. If home values start falling, the equity cushion that has protected many Americans from financial disaster could disappear.

In this scenario, credit tightens, foreclosures rise, and the consumer engine that drives the U.S. economy seizes. With banks already vulnerable, the cascading effects could ripple through employment, spending, and ultimately, trust in the entire system.

Despite what the headlines may suggest, this is not a normal correction. This is a consumer class being crushed under the weight of debt, rising costs, and stagnant wages. Today, 25% of Americans say they’re unsure if they can afford basic necessities. Many are relying on “Buy Now, Pay Later” schemes just to put food on the table.

And while the system may still appear functional on the surface, it’s rotting underneath. Like an iceberg, the real danger is what lies beneath. And if the consumer is the backbone of the economy, then what happens when that backbone gives way?

Prepare Before the Collapse

At ITM Trading, we don’t believe in waiting until the crash to act. The warning signs are here: rising delinquencies, falling credit scores, and weakening consumer fundamentals. The system is under stress, and it’s time to protect your wealth before it’s too late.

If you’re concerned about what’s ahead and want to take action to safeguard your financial future, we invite you to speak with one of our experts. Our team specializes in tangible assets like gold and silver—tools that historically hold value even when fiat systems falter.

Click the link in the description or call us today to schedule your free strategy session. Because in times like these, doing nothing is the greatest risk of all.