Household debt continues to rise as Americans keep spending. Increases in the cost of living have outpaced salary growth, while elevated interest rates have added to the strain.
The elimination of Biden-era benefits and loan forgiveness programs has also weighed heavily on many households that had grown accustomed to government relief and easy credit.
Total U.S. household debt reached a record $18.59 trillion in Q3 2025, an increase of $197 billion from the previous quarter. Household debt is distributed across several categories, with mortgages making up the largest share.
Mortgage balances rose by $137 billion to $13.07 trillion, while credit card balances climbed by $24 billion to $1.23 trillion, an all-time high, nearly 6% higher than a year earlier.
Student loan debt also reached a record $1.65 trillion, while auto loan balances remained steady at $1.66 trillion.
By category, total household debt includes $13.07 trillion in mortgages, $1.66 trillion in auto loans, $1.65 trillion in student loans, $1.23 trillion in credit card debt, $0.55 trillion in other debt, and $0.42 trillion in home equity lines of credit (HELOCs).
While the debt itself is problematic, a more worrying economic indicator is the rise in delinquencies.
About 4.3% of total debt is now more than 30 days past due, the highest level since early 2020 but still well below the 11% recorded during the 2009 financial crisis.
Nearly 10% of all student debt has been reported as 90 days or more delinquent, marking a record high for student loan delinquencies.
Liberal Democrat policies are partially to blame, as the spike stems in part from missed federal student loan payments that were not reported to credit bureaus between Q2 2020 and Q4 2024, which are now appearing in credit reports following the end of the pandemic payment pause.
Currently, 7.7% of aggregate student debt was reported as 90 or more days delinquent, compared to less than 1% in Q4 2024.
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