Household Debts, Delinquencies, and Bankruptcies Remain Elevated in Q4 2025

Despite record incomes, Americans continue to struggle with rising debt burdens and delinquencies, particularly in student loans.

Published on Feb. 11, 2026

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Total household debt in the U.S. rose by 1.05% or $195 billion in Q4 2025 to reach $18.8 trillion, according to data from the New York Fed. While the debt-to-disposable income ratio edged up to 81.2%, it remains below the pre-financial crisis peak. However, delinquency rates spiked, particularly for student loans, as borrowers came out of pandemic-era forbearance programs. Foreclosures and bankruptcies also showed signs of creeping up from historically low levels.

Why it matters

The data provides insight into the financial health of American households and the broader economy. Rising debt burdens and delinquencies, especially in student loans, could have ripple effects on consumer spending, the housing market, and the overall economic recovery.

The details

The increase in total household debt was driven by growth in mortgages, student loans, auto loans, and other consumer debt. While the debt-to-disposable income ratio remains below pre-crisis levels, it ticked up in Q4 as income growth lagged behind the rise in debt. The 30-day delinquency rate for student loans spiked to 16.3%, the worst on record, as borrowers came out of pandemic-era forbearance programs. The 90-day delinquency rate also rose, reaching 3.1% overall and 9.5% for student loans specifically. Foreclosures and bankruptcies, while still historically low, showed signs of creeping up from their artificially depressed pandemic-era levels.

  • In Q4 2025, total household debt rose by 1.05% or $195 billion.
  • The debt-to-disposable income ratio edged up to 81.2% in Q4 2025.
  • The 30-day delinquency rate for student loans spiked to 16.3% in Q4 2025, the worst on record.
  • The 90-day delinquency rate rose to 3.1% overall and 9.5% for student loans specifically in Q4 2025.
  • Foreclosures and bankruptcies, while still historically low, showed signs of increasing in Q4 2025 from their pandemic-era lows.

The players

New York Fed

The Federal Reserve Bank of New York, which partnered with Equifax to obtain the household debt and credit data.

Equifax

A major consumer credit reporting agency that provided the household debt and credit data to the New York Fed.

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What they’re saying

“This pattern has cropped up in a lot of metrics and is the result of the stimulus era pushing down the metric, and then it normalizes again.”

— Wolf Richter, Author (wolfstreet.com)

The takeaway

The data highlights the ongoing financial challenges facing American households, with rising debt burdens, delinquencies, and signs of stress in the broader economy. Policymakers and economists will be closely watching these trends as they assess the strength of the economic recovery and the potential need for further interventions.