US household debt hits a new record, NY Fed finds

Core Insights - American households' debt reached a record high of $18.59 trillion in Q3 2025, increasing by $197 billion from the previous quarter [1] - Mortgage balances rose by $137 billion to $13.07 trillion, while credit card balances increased by $24 billion to $1.23 trillion [2] - Delinquency rates for overall debt remained elevated at 4.5%, with notable increases in student loan delinquencies [5][9] Household Debt Overview - The growth in household debt is characterized as moderate, with delinquency rates stabilizing [3] - Auto loan balances remained steady at $1.66 trillion, and student loan balances increased by $15 billion to $1.65 trillion [2] - Transitions into serious delinquencies (90 days or more) were stable for auto loans, credit cards, and mortgages, with an overall serious delinquency rate of 3.03%, up from 1.68% a year prior [6] Student Loan Delinquency - The resumption of reporting missed payments on federal student loans led to a sharp rise in delinquencies, with 9.4% of student debt reported as 90+ days delinquent in Q3 2025 [9] Economic Context - The Federal Reserve cut interest rates for the second time in 2025 amid signs of a weakening labor market, indicating a bifurcated economy where higher-income consumers are spending more while lower-income households are struggling [12][14]