US household debt rises to $18.78 trillion
TL;DR
U.S. household debt reached $18.78 trillion in Q4 2025, driven by increases in mortgages, credit cards, and student loans. Delinquency rates remain high, especially for student loans, amid economic disparities and financial strain for lower-income borrowers.
US household debt rises to $18.78 trillion
U.S. Household Debt Reaches $18.78 Trillion in Q4 2025
As of Q4 2025, total U.S. household debt has risen to $18.78 trillion, reflecting continued borrowing across multiple categories despite a mixed economic landscape according to the latest report. This follows a $197 billion (1%) increase in Q3 2025, when debt totaled $18.59 trillion. The Federal Reserve Bank of New York's Household Debt and Credit Report attributes the growth to steady mortgage activity, rising credit card balances, and persistent student loan debt.
Mortgage debt remained the largest component, reaching $13.07 trillion by Q3 2025, with balances growing by $137 billion in the quarter. Home equity lines of credit (HELOCs) also rose, totaling $422 billion, while student loan debt stood at $1.65 trillion, up $15 billion from Q2 2025. Credit card balances climbed to $1.23 trillion, a 5.75% annual increase, with the average consumer balance now at $6,523. Auto loan balances remained stable at $1.66 trillion according to the report.
Delinquency rates remained elevated, with 4.5% of outstanding debt in some stage of delinquency in Q3 2025. Student loan delinquencies were particularly notable, with 9.4% of balances reported as 90+ days delinquent or in default, partly due to the resumption of credit reporting for missed payments from 2020–2024. Credit card and auto loan delinquencies showed modest stability, while HELOC delinquencies rose sharply, with 1.27% of balances entering serious delinquency.
The debt increase occurs amid a "K-shaped" economic divide, where higher-income households benefit from rising asset values, while lower-income borrowers face financial strain due to inflation, stagnant wages, and elevated interest rates according to CNBC analysis. Approximately 60% of credit card users carry revolving debt, paying an average of 20% annual interest.
For financial professionals, the data underscores divergent risks: robust housing markets and tight lending standards contrast with growing fragility in non-housing sectors. Policymakers and investors must monitor how these trends evolve amid ongoing fiscal and monetary policy adjustments.
[Source: dshort, Q4 2025 household debt report.]
[Source: New York Fed, Q3 2025 Household Debt and Credit Report.]
[Source: CNBC, analysis of consumer debt trends.]
