_{US NEWS}

Bond Market Meltdown: America’s Massive Debt Bill Comes Due

Markets plunged as growing fears over ballooning government debt — particularly from President Trump’s new tax-and-spending bill — triggered a massive sell-off in U.S. bonds. The proposed legislation would extend 2017 tax cuts, raise the debt ceiling by $4 trillion, and increase spending on defense and immigration enforcement, while slashing programs like Medicaid and clean energy credits.

Bond investors, alarmed by the U.S. fiscal outlook, demanded higher yields at a 20-year Treasury auction, pushing borrowing costs to their highest levels in nearly two decades. This selloff rippled through global markets, with the S&P 500 down 1.6%, the Dow falling over 800 points, and Asian markets following suit.

Economists and nonpartisan analysts say the bill worsens the deficit without addressing core debt issues. Rising interest rates, fueled by inflation and spending, are also expected to weigh heavily on the economy and limit the Federal Reserve’s ability to ease policy. Globally, similar pressures are mounting in the U.K. and Japan, where inflation is also surging.

Read More.

_{FINANCIAL NEWS}

Buy now, pay later pitfalls: Many consumers aren't paying loans

Consumers are increasingly struggling to repay short-term “Buy Now, Pay Later” (BNPL) loans, with rising delinquencies and growing losses for providers like Klarna. In Q1 2025, Klarna’s net loss doubled to $99 million, and consumer credit losses rose 17%. Although loan volume increased, so did the percentage of unpaid loans, from 0.51% to 0.54%.

Driven by persistent inflation, high interest rates, and resumed student loan payments, more Americans are turning to services like Klarna, Affirm, and Afterpay for financial relief. These platforms offer installment payments, but experts warn they make overspending easy and approvals too lenient.

A LendingTree survey found over 40% of BNPL users missed a payment in the past year. Meanwhile, U.S. household debt hit a record $18.04 trillion at the end of 2024, with credit card balances reaching an all-time high of $1.21 trillion.

The growing use of BNPL amid financial strain suggests deeper cracks in household finances, raising concerns about a potential consumer debt crisis. Read Now.