NEW YORK— U.S. household debt rose by $185 billion in the second quarter of 2025, reaching a record $18.39 trillion, according to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit.
The increase was driven primarily by mortgage balances, which jumped by $131 billion to $12.94 trillion. Non-housing debt also climbed, rising by $45 billion, or 0.9%, from the previous quarter.
According to the New York Fed analysis, credit card debt rose $27 billion to $1.21 trillion, while auto loan balances increased by $13 billion to $1.66 trillion. Home equity lines of credit (HELOCs) posted their 13th consecutive quarterly gain, up $9 billion to $411 billion. Student loan balances inched up $7 billion, reaching $1.64 trillion.
‘Performance Remains Strong’
“Despite the recent uptick in mortgage delinquency, overall mortgage performance remains strong by historical standards,” Joelle Scally, economic policy advisor at the New York Fed, said in a statement.
She noted, however, that the flow of debt into serious delinquency was mixed: credit card and auto loan delinquencies held steady, while student loan delinquencies continued to rise, and mortgages edged up.
The New York Fed said its report found 4.4% of total outstanding household debt was in some stage of delinquency in Q2.
“Transitions into early delinquency remained mostly unchanged across debt types except for student loans, which saw a sharp increase following the resumption of credit reporting on missed federal loan payments that had been paused between Q2 2020 and Q4 2024,” the New York Fed reported. “As a result, 10.2% of total student loan debt was 90 or more days delinquent.”
What Mortgage Data Show
The data also show mortgage originations rose slightly to $458 billion in new loans, while auto loan originations increased from $166 billion in Q1 to $188 billion in Q2. Credit card limits rose $78 billion, a 1.5% quarterly increase.
The New York Fed’s findings are based on data from its nationally representative Consumer Credit Panel.
