The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit shows that U.S. household indebtedness continued to grow in the fourth quarter of 2025, with shifting patterns in delinquency that underscore uneven financial pressures among consumers. The data provide key insight into credit trends as policymakers and economists assess broader economic resilience heading into 2026.
Total household debt climbed by $191 billion (1.0%) in Q4 2025, bringing the overall balance to $18.8 trillion. This marked a cumulative rise of roughly $740 billion during 2025, and a $4.6 trillion increase since the end of 2019, reflective of sustained borrowing across major credit categories.
Mortgage balances rose by $98 billion to about $13.17 trillion, while credit card debt increased by $44 billion and auto loans by $12 billion. Borrowing via home equity lines of credit (HELOCs) and student loans also grew modestly.
Despite the growth in debt, overall delinquency rates showed a nuanced picture. The share of outstanding household debt in some stage of delinquency rose to 4.8% in Q4, up from 4.5% in Q3, driven largely by mortgage and student loan arrears. Credit card and auto loan delinquencies appeared to have stabilized at elevated levels.
“We expect consumers to continue to leverage their equity to consolidate debt, improve cash flows, fund renovations, or buy investment properties," said Tom Davis, chief sales officer with Deephaven Mortgage. "The second lien origination market will continue to experience growth and provide opportunities for originators to stay in front of previous borrowers.”
Student loans remained the most troubled category, with nearly 9.6% of balances at least 90 days delinquent, reflecting the return of payment reporting after pandemic-era forbearance. Meanwhile, mortgage delinquencies — though still near long-term norms — continued an upward trend, particularly in lower-income areas and regions with weakening labor or housing markets.
New York Fed researchers noted that early delinquency transitions for non-housing debts such as credit cards are leveling off, suggesting a possible stabilization for some segments of consumer credit.
“As household debt levels grow modestly, mortgage delinquencies continue to increase,” said Wilbert van der Klaauw, economic research advisor at the New York Fed. “Delinquency rates for mortgages are near historically normal levels, but the deterioration is concentrated in lower-income areas and in areas with declining home prices.”
Economists view the mixed signals — modest debt growth, rising mortgage and student loan stress, and plateauing non-housing delinquency — as highlighting both resilience and vulnerability in household finances as the U.S. economy navigates slower labor market momentum and ongoing cost pressures.
