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U.S. Household Debt Hits Record $18.6 Trillion in Q3, New York Fed Finds

Previously unreported missed federal student loan payments appearing on credit files drove elevated delinquencies.

Overview

  • Total balances rose 1% quarter over quarter, up $197 billion to $18.59 trillion and $642 billion higher than a year earlier, according to the New York Fed’s Q3 report.
  • Credit card debt reached an all-time high of $1.23 trillion after a $24 billion jump, with about 60% of card users revolving balances and an average balance of $6,523 per consumer.
  • Student loan balances climbed to $1.65 trillion as roughly 9%–10% of debt was 90+ days delinquent and the transition into serious delinquency surged to 14.3%.
  • Mortgage debt increased to about $13.1 trillion with delinquency rates still low, and auto loans were broadly stable near $1.66 trillion.
  • Overall, 4.5% of household debt was in some stage of delinquency, with the highest serious-delinquency rates among borrowers ages 18 to 29 and growing evidence of a K-shaped divide by income and credit tier.