NEW YORK–Two new indicators of growing delinquencies in two different types of consumer categories reveal the kinds of strains being felt.
In the first category, Fitch Ratings is reporting that the number of risky borrowers who were at least 60 days behind on their car loans climbed to 6.65%, which is the highest level in more than 30 years, according to the company.
Fitch Ratings said the increase in delinquent car payments signals increased strain among consumers with the weakest credit, many of whom are having difficulty dealing with rising car prices and steep interest rates.
Pressure on the ‘Fragile’
“The worry isn’t that the entire market is suddenly at risk but instead that the tougher economic environment and the fact we’re late in the credit cycle is putting pressure on the smaller, more fragile companies,” Michael Hislop, an analyst at Curasset Capital Management said in a statement.
Hislop told Bloomberg that his company has reduced its exposure to the lowest-ranking subprime auto bonds, worried that banks could increase scrutiny of lenders and refuse to renew working capital lines used to fund auto loans.
Tricolor Holdings filed to liquidate in bankruptcy in September, facing allegations that it fabricated or double-pledged auto loans.
Overdue Utility Bills
Separately, the Century Foundation’s latest analysis shows that past-due utility balances climbed sharply between the second quarters of 2024 and 2025. Average arrears rose nearly 10% to just under $800 as energy costs continued their upward march, according to the foundation, which noted monthly bills for electricity and natural gas increased by roughly 12% over the same period.
“Although utility accounts rarely dominate economic headlines, analysts note that these payments sit near the top of household budgeting priorities — typically alongside mortgage instalments and vehicle finance,” Mortgage Professionals America reported. “When families fall behind on essential energy bills, it often signals trouble elsewhere in the balance sheet. Research suggests almost six million households now carry utility debt serious enough that it may soon be reported to collection agencies.”
