Some 4.3 per cent of debt was delinquent in the first three months of this year, the most since 2020 and up from 3.6 per cent in the prior quarter, the New York Fed said Tuesday in its Quarterly Report on Household Debt and Credit.

Those who haven't paid on their debt for nine months or more now face the harsh realities of debt collection. Here's what to do next.

Student loan delinquencies soared in early 2025, impacting millions of borrowers' credit scores as unpaid debts climb to $1.63 trillion. Image (c) Consumer

Some 8% of student loans in the first three months of the year were 90 or more days delinquent versus 0.8% in the fourth quarter of 2024. Meanwhile, most other types of borrowing troubles were largely steady in the first quarter relative to the end of 2024.