U.S. Household debt reached a record $18.8 trillion at the end of 2025, a rise of $191 billion, or 1.0%, in the fourth quarter, according to a report released February 10, 2026, by the Federal Reserve Bank of New York.
The increase was driven by gains across several categories, including a $98 billion rise in mortgage balances, bringing the total to $13.17 trillion. Credit card debt also climbed, increasing by $44 billion to $1.28 trillion. Auto loan balances rose by $12 billion to $1.67 trillion, while home equity lines of credit (HELOCs) increased by $11.6 billion to $434 billion. Student loan balances saw a $11 billion increase, reaching $1.66 trillion.
While overall debt levels are high, the report highlighted a concerning trend in delinquencies. Delinquency rates for mortgages are near historically normal levels, but the deterioration is concentrated in lower-income areas and in areas with declining home prices, according to Wilbert van der Klaauw, Economic Research Advisor at the New York Fed.
Non-housing balances increased by $81 billion, a 1.6% increase from the third quarter of 2025. The pace of mortgage originations also increased, with $524 billion newly originated in the fourth quarter. However, new auto loan originations saw a slight dip, falling from $184 billion in the third quarter to $181 billion.
Aggregate limits on credit cards continued to rise, increasing by $95 billion, and HELOC limits rose by $25 billion. The report, based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from Equifax credit data, provides a quarterly snapshot of household trends.
The overall delinquency rate for all household debt stood at 4.8% at the end of 2025, the highest level in nearly a decade. Student loan delinquencies surged following the end of pandemic-era protections, while credit card and mortgage delinquencies also edged higher, particularly among lower-income households, according to a report from Yahoo Finance.
U.S. Households accumulated $740 billion in new debt throughout 2025, according to the New York Fed report. The report also noted that the softer job market, high interest rates, and inflation are disproportionately affecting lower-income households.
