The Latest Personal Finance News for April 2025

The Federal Tax Deadline Is Coming Up

For most taxpayers, the deadline for filing their 2024 tax return and paying their tax bill is April 15, 2025. However, there are some exceptions that may apply to you. For example, you may have extra time to file if you reside in a federally declared disaster area.

Why It Matters

It's crucial to file and pay your federal taxes by the IRS deadline each year. Otherwise, you may be on the hook for penalties and interest charges. You can review the IRS disaster relief guidance to find out if you're eligible for an extension.

Note that you can request a six-month extension to file your return even if you don't live in a disaster area. However, if you owe taxes, you'll still need to pay your expected tax bill by the regular April deadline if you want to avoid a failure to pay penalty and interest.

What You Can Do

• Read tips to make your tax filing easier.
• Stay up to date on tax deadlines.
• Learn the various ways to lower your tax bill.
• Read about tax identity theft.

Nearly 10 Million Student Loan Borrowers Are Behind on Payments

Student loan delinquency has reached a record high as pandemic-era relief has expired, according to the Federal Reserve Bank of New York.

A recent report by the bank indicates that 9.7 million borrowers are past due on $250 billion worth of federal student loan debt, representing 15.6% of the federal loan portfolio. The previous high was 14.8% in 2018.

The news comes following the Department of Education's decision to reopen applications for income-driven repayment plans after blocking them in February.

Why It Matters

Despite steps taken by both the Biden administration and the first Trump administration to extend pandemic relief for student loan borrowers, millions are still struggling to return to regular repayment.

What's more, the decision by the Department of Education in February to block applications for income-driven repayment plans placed a significant burden on struggling borrowers. While getting on an income-driven repayment plan now can help you get back on track with student loan payments, it may not be a long-term solution, particularly with continued uncertainty about the federal education agency's future.

To avoid credit score damage and default—which can lead to additional costs and even legal consequences—it's important to take steps to assess your student loan debt and research potential solutions.

What You Can Do

• Learn about student loan forgiveness options.
• Read up on strategies to pay off student loans faster.
• Understand other student loan relief options, such as deferment or forbearance.
• Get details about employer student loan benefits.

Credit Card Debt Reaches a New Record High

Americans owe $1.16 trillion in credit card debt, according to third-quarter (Q3) 2024 Experian data, marking an 8.6% increase and a new record high. Average individual balances grew 3.5% to $6,730.

Delinquency rates have also increased. The Federal Reserve Bank of New York reports a whopping 7.18% of balances past due by 90 days or more as of Q4 2024. That's up from 6.36% in Q4 2023, and it's a 35% increase from the pre-pandemic rate of 5.32% in Q4 2019.

Why It Matters

Credit card debt can be a serious financial burden, and missing payments can create a variety of problems, including damage to your credit score, aggressive collection practices and a potential lawsuit.

While external factors, such as inflation, can make it challenging to avoid credit card debt and keep up with your payments, it's important to assess your situation carefully and find ways to tackle your credit card debt.

What You Can Do

• Get more details about consumer debt in the U.S.
• Learn how much credit card debt is too much.
• Develop a strategy for paying off high-interest credit cards.
• Figure out which debts to pay off first.

Recession Fears Have Reawakened

Talks of an impending recession ground to a halt in 2024 on positive economic data, but they've picked back up as the Trump administration has pursued new economic policies. According to the latest survey by the CNBC CFO Council, 60% of chief financial officers surveyed expect a recession in the second half of 2025, while 15% expect it to come in 2026.

Furthermore, the Conference Board's consumer expectations index dropped to a 12-year low in March. The index provides insight into how optimistic or pessimistic consumers are about the state of the economy in the near term. The current index of 65.2 is below the 80-point mark that usually signals a recession ahead.

Why It Matters

It's still unclear how the new administration's tariff policy will affect inflation numbers, but corporate executives and consumers alike are becoming increasingly nervous.

As recession fears pick up, it's crucial to reevaluate your financial situation and take steps to reduce your spending, pay down debt and increase your savings.

What You Can Do

• Create a budget and look for opportunities to cut your expenses.
• Take steps to tackle your debt.
• Boost your emergency fund.
• Learn how to prepare for a potential recession.

April Is Financial Literacy Month

The U.S. Senate officially designated April as Financial Literacy Month with the intent to raise awareness of the importance of smart money management and financial literacy. The following articles can help you improve your own financial literacy:

• What Is Financial Literacy?
• Financial Literacy Month Is a Great Time to Learn About Credit
• Why Is Credit Important?
• Ways to Teach Kids About Money

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score^☉ and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.