US Household Debt Reaches $18.8T in Q4 2025, Delinquencies Rise

Mortgage delinquencies increase, especially in lower-income areas, as credit card and student loan debt remain elevated

Published on Feb. 11, 2026

Got story updates? Submit your updates here. ›

Total household debt in the U.S. reached $18.8 trillion in the fourth quarter of 2025, a $191 billion increase, according to the Federal Reserve Bank of New York's latest Quarterly Report on Household Debt and Credit. While the growth is modest, the report highlights concerning trends, including rising mortgage delinquencies concentrated in lower-income areas and areas with declining home prices, as well as elevated credit card and student loan debt levels.

Why it matters

The combination of rising debt levels and increasing delinquencies points to a potentially challenging future for American consumers. The 'K-shaped' economic recovery, where some segments of the population are thriving while others struggle, is likely exacerbating these trends, with lower-income households and those in areas with declining home prices being particularly vulnerable.

The details

Mortgage balances grew by $98 billion in Q4 2025, reaching $13.17 trillion. However, the increase in delinquencies, with serious delinquency rates rising from 1.09% to 1.38%, signals potential trouble ahead for homeowners in economically challenged regions. Credit card balances continue to be a significant contributor to household debt, rising by $44 billion to $1.28 trillion, reflecting ongoing consumer spending and potentially a reliance on credit to cover everyday expenses. Student loan debt, totaling $1.66 trillion, saw an $11 billion increase, with the student loan delinquency rate remaining high at 9.6% for balances 90+ days delinquent, directly linked to the resumption of payment reporting after the extended pandemic forbearance period.

  • In the fourth quarter of 2025, total household debt in the U.S. reached $18.8 trillion.
  • Mortgage delinquency rates increased from 1.09% to 1.38% in Q4 2025.

The players

Federal Reserve Bank of New York

The organization that published the Quarterly Report on Household Debt and Credit, which provided the data for this story.

Wilbert van der Klaauw

Economic Research Advisor at the New York Fed, who noted that the deterioration in delinquency rates is concentrated in lower-income areas and in areas with declining home prices.

Got photos? Submit your photos here. ›

What they’re saying

“We must closely monitor these trends, as the combination of rising debt levels and increasing delinquencies points to a potentially challenging future for American consumers.”

— Wilbert van der Klaauw, Economic Research Advisor, Federal Reserve Bank of New York (Quarterly Report on Household Debt and Credit)

What’s next

Policymakers, lenders, and consumers will need to closely monitor these trends in household debt and delinquencies to address the growing vulnerabilities, especially for lower-income households and those in areas with declining home prices.

The takeaway

The rise in household debt, coupled with increasing delinquency rates, particularly in mortgage, credit card, and student loan payments, underscores the financial strain facing many American consumers. This 'K-shaped' recovery is exacerbating economic divides, requiring vigilance from policymakers, lenders, and individuals to mitigate the potential long-term consequences.