Household Debt Hits Record High of $18.39 Trillion Driven by Mortgage Payments

U.S. household debt has reached a record high of $18.39 trillion, driven largely by rising mortgage balances. According to a report released by the Federal Reserve Bank of New York, household debt rose by $185 billion in the second quarter of 2025, with mortgage balances growing by $131 billion to reach $12.94 trillion.

Credit card debt also surged, adding $27 billion to reach $1.21 trillion, while auto loan balances climbed $13 billion to $1.66 trillion. Student loan balances inched up $7 billion to $1.64 trillion, although delinquency rates for student debt rose sharply due to the resumption of credit reporting for missed payments that occurred during the pandemic pause.

“Despite the recent uptick in mortgage delinquency, overall mortgage performance remains strong by historical standards,” said Joelle Scally, an economic policy advisor at the New York Fed.

The report is based on data from the New York Fed’s Consumer Credit Panel.