蘑菇AV

While most Gen Zers are managing their debts, relying on credit cards for everyday spending could spell trouble

Nearly one-quarter of working-age US adults are underinsured: More consumers are being pushed onto less generous health plans, which will inevitably result in sicker patients with higher amounts of medical debt.

Pfizer explores a sale of its hospital drugs unit: The move was spurred by activist investor Starboard Value, which has put pressure on Pfizer to reduce its debts after taking a $1B stake in the company.

Square Loans, Cash App Borrow, and Afterpay were all bright spots that should yield longer-term growth

Record APRs are putting off consumers鈥攚e look at what this means ahead of issuers鈥� earnings later this week.

Advocate Health cancels liens, forgives medical debt of thousands: The health system鈥檚 abrupt decision to forgive patients鈥� debt is a play to save face after the results of an eye-opening investigation were published.

Streaming investments drive Paramount鈥檚 layoffs: the company struggles to balance growing debt with declining traditional TV ad revenues.

This move could spur demand for financial institutions鈥� consumer lending products like mortgages. Get ready to compete for this business.

There are, however, still many unknowns鈥攍ike how interest-bearing loans will be treated

A recent study reveals this generational cohort cares less about accumulating and paying off debt than they do about saving.

Many are willing to go into debt to get through the season. This could become a problem for payment providers

Players like United Wholesale Mortgage, Rocket Mortgage, Fairway Independent Mortgage Corporation, and CrossCountry Mortgage comprised 15 of the top 25 US mortgage lenders by originations in 2024, per The Motley Fool.

As more BNPL providers report their information, loans could start getting factored into credit scores. Why it matters: More than half of BNPL users pay with the method at least once a month, per a TransUnion survey from July 2024. Given this frequency, BNPL loans are important for lenders to take into account to prevent consumers from stacking loans.

Bringing the service in-house will give Block more control over who is offered and approved for Borrow loans鈥攁s well as more of the revenues. Cash App Borrow originated almost $9 billion in loans in 2024, per Block鈥檚 Q4 2024 earnings. That鈥檚 already helped drive Cash App鈥檚 gross profit up 16% YoY.

Providing flexible loan options such as deferred payments or lower interest rates for those experiencing financial hardship. Enhancing digital tools that let customers track spending, set savings goals, and receive personalized financial advice. Expanding financial education resources on topics like managing debt, preparing for economic downturns, and long-term investing.

Develop flexible debt repayment options including low-interest debt consolidation programs, hardship repayment plans, and financial coaching to help customers manage and reduce their debt burden. Strengthen financial safety nets by offering emergency loan products with lower interest rates and transparent terms to prevent customers from turning to high-cost alternatives in times of crisis.

Debt fears, revisited: There are new signs that consumers may be relying more often on their cards to make ends meet鈥攚hich could turn into an unsustainable reliance on debt. Revolving credit rose a strong 8.2% annualized in January, per the Federal Reserve. On an annualized basis, total outstanding revolving debt rose by $9 billion from December to January.