NY Fed Report: Household Debt Rises 1% to $18.4 Trillion Amidst Surging Student Loan Delinquencies

Household Debt Growth

• 📈 Total household debt saw a modest increase of 1% in Q2 2025, amounting to an additional $185 billion, bringing the total to $18.4 trillion.

Delinquency Trends

• ⚠️ Auto loan and credit card delinquencies remain elevated, indicating ongoing financial strain for some households.
• 🎓 Student loan delinquencies have surged significantly due to a change in reporting treatment, with 30-day delinquencies reaching 13%.
• 📊 While overall delinquency rates are up, they are considered relatively modest when excluding student loans.

Mortgage and Broader Economic Watch

• 🏠 90-day mortgage delinquencies are at their highest level since Q4 2016, standing at 1.3%, though still not at a worrisome level.
• 🔍 The report is being monitored for signs of broader economic weakness, with current indicators not yet pointing to significant concern outside of student debt impacts.