Credit Sesame’s personal finance news roundup May 10, 2025. Stories, news, politics and events impacting personal finance during the past week.
Parents fuel gig economy spending
Households with children are likely to remain among the heaviest users of gig economy services such as ride sharing and food delivery. A new TransUnion survey finds that these households are nearly five times more likely than those without children to spend $500 or more per month on such services. In the survey, 23% of families with children reported this level of spending, compared to just 5% of child-free households. Delivery of prepared foods is the most frequently used service, with 61% of households with children using it at least once a week, versus 40% of those without children. Retail deliveries, including groceries, are the second most common, used by 54% of families with children and 33% of those without. See news release at TransUnion.com.
Consumer debt returns to growth in March 2025
Consumer debt resumed its upward trajectory in March, according to the Federal Reserve, rising at a 2.4% annual pace — more than enough to offset February’s slight decline. In a shift from recent patterns, nonrevolving debt, which includes loans, grew faster than revolving debt, such as credit card balances. While revolving debt is typically more expensive, nonrevolving debt increased at a 2.7% annual rate, compared to 1.7% for revolving debt. See consumer credit report at FederalReserve.gov.
1 in 5 student loans now seriously delinquent
About one in five federal student loans is now 90 days or more past due, according to a new TransUnion study — the highest serious delinquency rate the agency has ever recorded. The data excludes borrowers in forbearance or deferment, meaning the actual number of those behind on their original repayment schedules is likely higher. The report comes as the Department of Education resumes referring delinquent loans for collection as of May 5. See article at Yahoo.com.
International travel to the U.S. drops 14%
Foreign travel to the United States declined by 14% year over year through March, according to the U.S. Travel Association. The drop is believed to stem in part from a more hostile political climate. The association estimates that each 1% decline in travel volume results in approximately $1.8 billion in lost revenue, underscoring the broader economic impact of reduced international visits. See article at USTravel.org.
U.S. productivity declines for first time in over two years
Business productivity in the U.S. fell at a seasonally adjusted annual rate of 0.8% in the first quarter of 2025, marking the first decline in two and a half years. The drop raises concerns on multiple fronts: falling productivity can contribute to inflation by reducing output per hour worked, and it may also signal an economic slowdown as companies cut production in response to weakening demand. See first quarter productivity report at BLS.gov.
Fed holds interest rates steady amid mixed signals
The Federal Reserve has left the federal funds rate unchanged at a range of 4.25% to 4.5% following its latest policy meeting. After cutting rates by a full percentage point late last year, the Fed still officially plans to lower rates by another 0.5% in 2025. For now, the decision to pause reflects the central bank’s effort to balance its dual mandate: supporting a cooling job market while keeping inflation in check. Although hiring has slowed, employment is still growing, and inflation, while easing, could rise again if tariffs pressure consumer prices. See Fed statement at FederalReserve.gov.
Mortgage rates hold steady despite market volatility
Despite recent turbulence in financial markets, mortgage rates have remained steady. Last week, 30-year fixed mortgage rates stayed within a narrow range of 6.76% to 6.83% for the fourth consecutive week, holding firm at 6.76%. Fifteen-year mortgage rates also showed little movement, slipping just three basis points to 5.89%. See rate details at FreddieMac.com.
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