Category Credit & Debt

In response to rising national debt and growing concerns about student loans, House Republicans launched a plan in April 2025 to change the way students pay for college. This proposal aims to reshape federal student aid by offering new repayment options, changing interest rates, and making it harder to qualify for government-backed loans. Supporters say the changes could help control government spending and make the loan system more responsible, while critics worry students may have fewer resources to afford higher education. With student debt still a major issue in the U.S., this proposal is expected to spark heated debate in Congress leading into the 2026 legislative session.

On July 28, 2025, big changes hit the student loan system in the U.S., causing confusion and concern for millions of borrowers. A court blocked President Biden’s popular SAVE (Saving on a Valuable Education) repayment plan, leaving many people unsure about how they’ll pay back their loans. At the same time, interest on federal student loans is starting again on August 1, ending a pause that began during the COVID-19 pandemic. In response to the sudden change, the Department of Education announced new repayment options for borrowers whose federal loans were taken out between July 1, 2014, and July 1, 2026. These updates show how student loan policies continue to shift, especially during an election year.

Social media is changing the way people spend money—and not always in a good way. With popular influencers constantly posting about products and trends, many people now make quick purchases without thinking, often using digital wallets that make buying just a tap away. These small but frequent buys can quietly add up, leading to higher credit card debt and tighter household budgets. At the same time, rising prices, slow wage growth, and economic uncertainty are making money even harder to manage. This mix of online temptation and real-world financial stress has made it more challenging for people to stick to budgets or feel in control of their spending.

In 2025, many Americans are cutting back on their spending, especially on non-essential items like vacations and entertainment. This shift is mainly due to higher prices (inflation), growing personal debt, and slower income growth. As a result, families are spending less—about 25% less—on summer vacations compared to last year. Hotel bookings are down, and fewer people are traveling, even compared to years before the COVID-19 pandemic. Since consumer spending makes up about 70% of the U.S. economy, this slowdown could have a big impact on the country’s financial health. Families are being more cautious with their money as they face increasing financial pressure.

Buy Now, Pay Later (BNPL) services are becoming a serious financial risk for many Americans. These services let people purchase items immediately and spread payments out over time, often without interest. However, recent reports show that more than 40% of BNPL users are behind on their payments, a significant increase from last year. Even more concerning is that about one-quarter of users rely on these payment plans to buy essential items like groceries. Experts say this situation could lead to lasting damage to people's credit scores and financial security. The growth in BNPL use is partly caused by persistent high inflation, economic anxiety, and political uncertainty involving unresolved trade policies. As the Federal Reserve hesitates to change interest rates, Americans facing financial challenges are increasingly turning to BNPL programs, raising concerns about their long-term financial well-being.