Americans are grappling with unprecedented levels of household debt, as recent data reveals a staggering total of $18.59 trillion from July through September of this year. The Federal Reserve Bank of New York announced an astounding, record-breaking jump of $197 billion from the last quarter. This exceptional growth represents a remarkable success story in the nation’s otherwise weak economic recovery.
Relatedly, the report points out the alarming new wave of student loan debt recently reaching an all-time high of $1.65 trillion. Combined, this has contributed to an alarming trend. Almost 1/10th of all student debt is now overdue by at least 90 days. Missed federal student loan payments are appearing on consumer credit reports today. This issue is further exacerbated as these missed payments were not reported to credit bureaus prior.
Beyond student debt, auto loan balances have plateaued, stuck at $1.66 trillion. Credit card debt has skyrocketed to an all-time high. It’s up $24 billion, on track to set another historic record of $1.23 trillion for the third quarter of this year. Since 12 months ago, credit card debt has increased almost 6%. Net overall, household debt levels are at least $4.4 trillion higher than at the end of 2019.
Household balance sheets are still “solid,” researchers at the New York Fed said in their analysis of these troubling numbers. Ted Rossman, senior industry analyst for CreditCards.com, said that it’s a very mixed bag right now. He stated, “Student loan delinquencies are at a record high, but auto loan and credit card delinquencies aren’t as high as they were in the middle of 2024.”
Rossman highlighted the wider economic impact of these trends. “While there is some distress at the household level – in line with that K-shaped economy where the rich get richer and the poor get poorer – the macro picture is fairly bright.”
The report shows troubling signs of weakness among younger borrowers, who are at risk of compounding hardships as they navigate their debts. After falling for nearly two years, student loan delinquency rates jumped dramatically during the first half of 2025. The cost of this increase has led many to publicly worry about the long-term financial welfare of students.
