Americans’ household debt has reached a new record, clocking in at $18.59 trillion during the third quarter of 2025, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit. This figure represents a $197 billion increase over the previous quarter and a staggering $4.4 trillion jump since the end of 2019, just before the pandemic recession.
Household debt covers a broad range of obligations including mortgages, car loans, credit cards, student loans, and home equity lines of credit. Among these, mortgage debt dominates with balances growing by $137 billion in the third quarter to a total of $13.07 trillion. The volume of newly originated mortgages rose as well, signaling ongoing activity in the housing market despite challenges faced economically.
Credit card debt has also climbed noticeably, rising by $24 billion quarterly to an all-time high of $1.23 trillion. This 5.75% increase from a year ago highlights ongoing reliance on credit for everyday expenses or possibly a response to inflationary pressures. Conversely, auto loan balances remained steady at $1.66 trillion, indicating a pause in growth in this sector.
Home equity lines of credit (HELOCs) have been steadily increasing, with balances up by $11 billion to $422 billion, marking the fourteenth consecutive quarterly rise. These lines of credit serve as an accessible form of borrowing for many homeowners tapping into their home’s value.
Student loan debt, an area of particular concern, rose by $15 billion to $1.65 trillion. The report underscores a notable complication in this category: nearly 10% of student loan balances were reported as 90 or more days delinquent. This delinquency rate has increased sharply since federal pandemic-era payment pauses ended, revealing a sudden wave of missed payments now being reflected in credit reports. Transitions into serious delinquency for student loans reached 14.3% in the third quarter, the highest transition rate recorded since the data collection began in 2000.
Overall, the portion of household debt in some stage of delinquency, meaning payments are late but not necessarily defaulted, edged up slightly to 4.5% from 4.4% the previous quarter. While mortgage delinquency rates remain low, reflecting the housing market’s resilience bolstered by significant home equity and strict lending standards, student loans stand out as an ongoing challenge.
The implications of these trends are multifaceted. For consumers, rising debt balances coupled with elevated delinquency rates, especially among student borrowers, could signal financial strain ahead. The rising credit card balances and growing mortgage originations reflect continued borrowing, but also increased household indebtedness that might be vulnerable to economic shocks, including labor market softening.
Lenders face their own risks, balancing opportunities from increased borrowing against potential defaults. The report also highlights emerging concerns about demographic groups more vulnerable to financial hardship, particularly younger borrowers, as well as Black and Hispanic consumers. These groups may be more susceptible to unemployment and subsequent difficulty servicing debt.
From a broader economic perspective, the growth in household debt and shifting delinquency patterns could influence consumer spending, a critical driver of U.S. economic activity. If more households start struggling with repayments, it could dampen consumption and place downward pressure on growth. At the same time, relatively stable delinquency rates in non-student categories provide some reassurance that the overall consumer credit picture is not deteriorating rapidly.
In understanding household debt data, it is essential to remember the backdrop of pandemic-related disruptions, including the four-year pause on federal student loan repayments and other relief efforts that temporarily altered debt service patterns. As those programs end, credit reports now reflect missed payments from past quarters, complicating the delinquency landscape.
