American households, record debt of 18.8 trillion USD - Late payment rates are rising on credit cards, student loans
Household debt in the US reached a record $18.8 trillion in the fourth quarter of 2025, $4.6 trillion more than at the end of 2019, according to the New York Federal Reserve's Quarterly Report on Household Debt and Credit.
Mortgage loan balances make up the largest portion of that total, reaching $13.6 trillion. Debt, which includes student loans, credit cards, auto loans and personal loans, reached $5.17 trillion, up 1.6% from the third quarter.
The debt increase is happening even as wages have risen. Economists talk of a structural tightening: the personal savings rate has fallen from 6.2% to 4%, and high borrowing costs along with rising housing and health care costs are outpacing any wage increases that households have managed to accumulate.
The stress on household balance sheets is becoming evident across multiple debt categories. Student loan balances reached $1.66 trillion in the fourth quarter, $11 billion more than the previous quarter, and 9.6% of student loan borrowers were at least 90 days delinquent. The Trump administration resumed repayment of federal student loans in 2025, pushing nearly 9 million borrowers into bankruptcy. Mortgage delinquencies also rose.
Broken down by household, the $18.8 trillion figure represents roughly $154,152 in debt per American household. Among generations, Generation X carries the heaviest debt burden on average, although that number has declined compared to 2024 as the generation moves through the stages of paying off mortgages and financing their families after college. Generation Z saw the most significant year-over-year growth, reflecting the group’s entry into higher education and first-time home purchases.
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