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U.S. Household Debt Climbs to $18.39 Trillion as Delinquencies Rise

Higher borrowing costs and the return of student loan reporting have exposed mounting payment strains that the New York Fed warns could deepen.

A man passes by the cornerstone on the Federal Reserve Bank of New York in the financial district in New York City, U.S., March 4, 2019. REUTERS/Brendan McDermid/File Photo
Car loans and credit cards lead delinquencies.
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Overview

  • Total household debt increased by $185 billion in the second quarter to $18.39 trillion, driven by gains across mortgages, credit cards, auto and student loans.
  • Overall delinquency rates ticked up to 4.4 percent of outstanding balances, reflecting an elevated level of payment troubles.
  • Student loan delinquencies rose sharply to 10.2 percent of balances 90 or more days past due following the end of the pandemic-era reporting pause.
  • Mortgage balances grew by $131 billion to $12.94 trillion, with slight upticks in delinquency rates for conventional and FHA loans, particularly in Southern states and Puerto Rico.
  • Credit card balances climbed to $1.21 trillion and auto loans to $1.66 trillion, and New York Fed researchers expect student loan stress to continue rising.