Household debt climbed in Q4 2025 as mortgage balances and delinquencies edged higher, highlighting emerging credit stress and renewed second-lien opportunity for originators heading into 2026
Despite soaring debt, just 1 in 3 homeowners take strategic steps to regain control
Mortgage debt is the primary driver behind rising credit balances
A third of retirees miss out on leisure and travel to afford bills
Nonprofit financial counseling agency says 90% more people reaching out year over year.
The student loan pause allowed some young Americans to buy homes; with payments restarting, they could now face a harsh reality.
Mortgage originations fell to $498B, returning to pre-pandemic levels.
Total household debt in the quarter increased 2.2% to $16.51 trillion.
The New York Federal Reserve Bank says Americans now hold more than $11 trillion in mortgage debt