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A 9% Jump That Advisors Shouldn’t Ignore
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're talking about household debt and what that looks like for Americans. While balances were stable year-over-year despite tariffs and inflation, the surprising rise in HELOCs hint at growing financial stress for many. Read on for all the details and discover the trends shaping households today.
Plus, a look at all the top stories and market activity from this past week.
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Table of Contents
INDUSTRY CHATTER
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At first glance, this year looks pretty quiet when it comes to household debt. According to a recent report by Experian, the average American now carries $104,755, which is largely unchanged from last year.
Good news? You might think so.
Considering a year marked by inflation, tariffs, and rising living costs, that “flat” figure might seem like a win for households. However, when you look closer at at the numbers, they are still feeling the pinch.
A “Stable” Average That Isn’t Really Stable
Mortgage, auto loan, and credit card balances all increased this year. The only thing keeping the national average from rising further was the temporary dip in student loan balances after one-time discharges. Without that distortion, the overall picture would look far more strained.
And that’s where the most important shift shows up: HELOC balances jumped 9%. More homeowners are tapping into their equity, and the motivations are split. Some are consolidating high-rate debt or using a HELOC strategically. Others are leaning on equity because their monthly budgets are stretched thin — even as home values rise.
For advisors, that difference matters. A HELOC can be a planning tool or an early warning sign, depending on what’s driving the behavior.
Debt Patterns Differ By Score And Generation
Debt also rose at both ends of the credit-score spectrum. High-score borrowers are often taking on debt intentionally: financing EVs, renovations, or simply securing favorable terms. On the other hand, lower-credit borrowers are typically accumulating debt for more stressful reasons: higher interest costs, limited refinancing options, and fewer chances to lower payments.
At the same time, more Americans are moving into higher credit ranges. The number of Americans that now have a FICO score above 740 has increased from 46.5% to 50.3%. Yet the picture varies widely across generations and states: Gen Z saw the largest debt increases over the past year, while Colorado tops the state with the highest amount of average household debt ($155,000), while West Virginia ($63,000) has the lowest.
Consumer debt may look “flat” this year, but its all about the “how” and the “why” people are borrowing. From HELOC surges to generational shifts, households are feeling the pressure, whether they are admitting it or not.
WEEKLY MARKET RECAP
The stock market staged a powerful comeback during the shortened holiday week, as expectations of a Federal Reserve rate cut at the Dec. 10 meeting soared, fueling broad-based gains across sectors.
The rally was ignited by a notable shift in tone from Federal Reserve officials. Several members openly signaled support for a 25-basis-point rate cut, flipping market sentiment that had, until last week, priced the odds of such a move at 50% or less. According to markets, those chances have now surged to nearly 90%.
Notably, the hawkish tone of Fed Chair Jerome Powell in October, when he said a December cut was "far from" guaranteed, appeared to be losing weight as his term draws to a close in May 2026.
Meanwhile, political chatter around Powell's successor intensified. Kevin Hassett, former White House economist and current head of the National Economic Council, was now viewed as the leading contender. Odds of a Trump nomination for Hassett jumped to 57%, with analysts already having factored in a more dovish Fed pivot in 2026.
On Wall Street, Alphabet (GOOGL) was the week's standout winner. The Google parent company surged past Microsoft (MSFT) to become the world's third-largest publicly traded company, hitting a $4 trillion market cap. The jump came amid fresh investor optimism over Alphabet's progress in artificial intelligence, with multiple new AI features and enterprise tools announced in recent weeks.
Nvidia (NVDA) didn't share the same momentum, closing out November as the worst month since March.
Reports revealed Meta (META) is considering a multibillion-dollar investment in Alphabet's custom AI chips, which fueled concerns about Nvidia's future dominance in the space.
AI enthusiasm is now rippling beyond the usual suspects. The health care sector – as tracked by the Health Care Select Sector SPDR Fund (XLV) – which is using AI to help speed up the R&D cycle, posted its strongest month since the COVID-19 pandemic, with several biotech names that notched double-digit weekly gains, suggesting fresh risk appetite in previously beaten-down corners of the market.
Meanwhile, the Detroit auto sector quietly continued its bullish streak. General Motors (GM) hit a new all-time high at $72 on Wednesday, closing its fifth straight month in the green. The stock was now up 37% year-to-date, cementing a turnaround narrative that has defied broader concerns about U.S. manufacturing.
THE WEEK AHEAD
Economic Data
Monday: Jerome Powell Speech, PMI and ISM manufacturing
Tuesday: Auto sales, Fed Speech (Michelle Bowman)
Wednesday: ADP employment, Import Price Index, ISM services
Thursday: Initial jobless claims, trade deficit
Friday: PCE, consumer sentiment, consumer credit
Earnings
Click here for the full calendar of economic data and earnings reports.
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