According to Federal Reserve data, total U.S. household debt reached a record $18.39 trillion in the second quarter of 2025. The increase was driven by mortgage debt, auto loans, and credit card balances, with some sectors showing rising delinquencies, particularly for student loans.
Q2
2025 personal debt summary
Key findings from the Federal Reserve Bank of New York's Household Debt and Credit Report for the second quarter of 2025 include:
Key
findings from the Federal Reserve Bank of New York's Household Debt and Credit
Report for the second quarter of 2025 include:
· Total debt
increase: Household debt increased by $185 billion, or 1%, during the
quarter.
· Mortgage
debt: Grew by $131 billion to a total of $12.94 trillion.
· Credit card
debt: Rose by $27 billion to $1.21 trillion. CNBC noted this was in line
with the all-time high set in the fourth quarter of 2024.
· Auto loan
debt: Increased by $13 billion to $1.66 trillion.
· Student loan debt: Balances edged up by $7 billion to $1.64 trillion.
Debt
delinquency rates
Aggregate
delinquency rates remained elevated in the second quarter of 2025, reaching
4.4% of outstanding debt. Delinquency trends varied by debt type:
· Student
loans: Showed a sharp increase in serious delinquency (90+ days past due),
reaching 12.88% in Q2 2025. This is attributed to the resumption of credit
reporting for missed federal student loan payments after a multi-year pause.
· Credit card and auto
loans: Transitions into serious delinquency were largely stable.
· Mortgages and Home Equity Lines of Credit (HELOCs): Delinquency rates increased slightly.
Debt
trends and context
· Record-high debt,
historically low payments: While the nominal total household debt is at an
all-time high, the percentage of disposable income used for debt payments
(11.2% in Q1 2025) is still lower than the peak levels of the mid-2000s.
· Age group
differences: The 40–49 age group carries the highest total debt among all
demographics, while those aged 18–29 carry the least.
· "K-shaped" consumer landscape: An Equifax report noted a growing divide between financially resilient borrowers and "subprime" borrowers with lower credit scores who are showing signs of financial stress.
https://www.google.com/search?q=us+citizen+personal+debt+2025
Comments
US Citizens have too much personal debt. Reducing Credit Card Debt is the first priority, because of 15% interest charges. Student Debt needs to be paid off next.
Norb Leahy, Dunwoody GA Tea Party Leader
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