Americans are falling behind on their debts and the US government is buried in interest payments, which is bad for consumers, young people, and taxpayers.

• Commercial real estate loan defaults are climbing, and many of these loans must be refinanced soon at much higher rates.
• Overall debt delinquency jumped 33% in one year, with credit cards and home equity loans hit hardest.
• Gen Z is in serious trouble, with credit card delinquency over 8% and total delinquency near 10%, far worse than older groups.
• The US government now spends 23% of every tax dollar just on interest, soon to top the defense budget.
• More car buyers are stuck with bad credit and paying huge interest rates, pushing auto loan costs sharply higher.

Outlook: If the Fed does not cut rates by late July, delinquencies and interest costs will keep climbing and squeeze consumers harder.