American Debt Rises Moderately In 3rd Quarter Of 2025

The New York Fed said 4.5% of outstanding household debt can be attributed to delinquency.

The Federal Reserve Bank of New York’s latest quarterly report states that the U.S. household debt rose by 1% in the third quarter of 2025.

Average household debt has risen to $18.59 trillion, with credit card and student loan balances at the top of the list. Auto debt remains steady.

Mortgage balances have grown by $137 billion, totaling $13.07 trillion. Additionally, credit card balances rose by $24 billion to $1.23 trillion, while student loan balances grew by $15 billion to $1.65 trillion. Overall, non-housing debt gained $49 billion from the prior quarter.

The New York Fed said 4.5% of outstanding household debt can be attributed to delinquency.

“Household debt balances are growing at a moderate pace, with delinquency rates stabilizing,” said Donghoon Lee, an economic research advisor at the New York Fed. “The relatively low mortgage delinquency rates reflect the housing market’s resilience, driven by ample home equity and tight underwriting standards.”

Student loans remain at the forefront of American debt. The share of student debt that is 90 days or more delinquent, or in default, stood at 9.4% at the end of Q3. The New York Fed notes that missed federal payments from 2020 to 2024 are now appearing on credit reports. Consequently, adjusted reports are keeping delinquency rates elevated even as some borrowers resume repayment.

The report draws from the New York Fed’s nationally representative Consumer Credit Panel, which uses Equifax credit files to track borrowing and repayment behavior over time. The dataset provides a lens into how families manage mortgages, credit cards, auto loans, student loans, and other liabilities. The tracking is said to help community groups and policymakers respond to shifting economic conditions.

Researchers and practitioners watching household balance sheets say the topline numbers show that consumers are becoming frugal. Mortgage delinquencies remain low, supported by strong home equity that gives many owners a cushion.