| According to the New York Fed’s Q3 2025 Household Debt and Credit Report, total U.S. household debt rose $197B to $18.59T, with mortgage balances up $137B and credit card debt reaching a record $1.23T. |
| Aggregate Debt and Balances ● Total household debt increased by $197 billion (1%) in Q3 2025, reaching $18.59 trillion. ● Debt balances are up $4.44 trillion since the end of 2019. Housing Debt ● Mortgage balances grew by $137 billion to $13.07 trillion. ● HELOC balances rose by $11 billion to $422 billion, marking the 14th consecutive quarterly increase and standing $105 billion above the Q1 2022 low. ● There were $512 billion in new mortgage originations in Q3 2025, up from $458 billion in Q2. ● About 55,000 individuals had new foreclosure notations added to their credit reports, an increase from the prior quarter. ● HELOC limits rose by $8 billion, continuing the upward trend since 2022. Non-Housing Debt ● Total non-housing balances increased by $49 billion (1.0%) from Q2. ● Credit card balances rose by $24 billion to $1.23 trillion, up 5.75% year over year. ● Auto loan balances remained steady at $1.66 trillion. ● Other consumer balances (retail cards and consumer finance loans) rose by $10 billion to $550 billion. ● Student loan balances rose by $15 billion to $1.65 trillion. Loan Originations and Credit Quality ● Auto loans and leases totaled $184 billion in new originations, slightly down from $188 billion in Q2. ● Credit card limits increased by $94 billion (1.8%). ● Median credit score for new auto loans held steady, while the 10th percentile score increased by 9 points, signaling tighter subprime standards. ● For mortgages, the median credit score declined by 2 points, and the 10th percentile score fell by 3 points, indicating a slight softening in credit quality. Delinquency and Public Records ● 4.5% of outstanding debt was in some stage of delinquency, 0.1 percentage points higher than Q2 2025. ● Transition rates into early delinquency were steady across most loan types. ● Serious delinquency rates (90+ days past due) remained largely stable for auto loans, credit cards, and mortgages, and increased slightly for HELOCs. ● Student loan delinquencies continued to rise but began stabilizing after resumption of credit reporting. ● In Q3 2025, 9.4% of student loan debt was 90+ days delinquent, compared to 7.8% in Q1 and 10.2% in Q2. ● About 141,000 consumers had a bankruptcy notation added to their credit reports, a modest quarterly increase. |
