Overview
- Total balances rose by $197 billion, or 1%, from the second quarter, with mortgages near $13.1 trillion, credit cards at $1.23 trillion, student loans at $1.65 trillion and auto loans roughly flat at $1.66 trillion.
- About 4.5% of outstanding debt was in some stage of delinquency in Q3 and 3% of balances flowed into serious delinquency, the largest quarterly increase in 90+ day distress since 2014.
- Student loan trouble intensified as previously unreported missed payments from mid‑2020 through 2024 began hitting credit files, leaving 9.4% of student debt 90+ days delinquent or in default in Q3.
- Credit card balances reached a new high of $1.23 trillion, up $24 billion on the quarter, with many revolvers paying roughly 20% annual interest, adding to household budget stress.
- Fed researchers and Chair Jerome Powell describe a bifurcated economy, with younger and lower‑income borrowers under rising pressure even as wealthier households appear resilient following a recent rate cut to support a softening job market.