“2:17STOCK PHOTO/Getty Images The level of American household debt, including mortgages, auto loans, credit cards and student loans, has now hit a new record high, according to data released Wednesday by the Federal Reserve Bank of New York. York. Total household debt hit $18.59 trillion between July and September this year, up $197 billion from the previous quarter. General […]”, — write: businessua.com.ua
2:17 STOCK PHOTO/Getty Images
The level of American household debt, including mortgages, auto loans, credit cards and student loans, has now hit a new record high, according to data released Wednesday by the Federal Reserve Bank of New York. York.
Total household debt hit $18.59 trillion between July and September this year, up $197 billion from the previous quarter. The total debt level has increased by $4.4 trillion since the end of 2019 year, just before the recession pandemic.
In a call with reporters on Wednesday, New York Fed researchers said overall household balance sheets do remain “fairly strong,” although there are some signs of weakness among younger borrowers.
The report also shows that Americans’ student loan debt has set a new record of $1.65 trillion. Many more borrowers also default on their payments; nearly 10% of all student debt was 90 days or more delinquent.
PHOTO/Getty Images
“Missed federal student loan payments that were not previously reported to credit bureaus between Q2 2020 and Q4 2024 are now showing up on credit reports,” the report said. “Thus, the student loan delinquency rate remained high after a sharp increase in the first half of 2025.”
Researchers at the New York Fed said the measurement of student loan delinquencies is still ongoing. complicated by the fact that payments were suspended for four years during the pandemic.
“Student loan delinquencies are at a record high, but auto loan and credit card delinquencies are not as high as they were in mid-2024,” Bankrate senior industry analyst Ted Rossman said in a research note on Wednesday.
The report also shows that outstanding balances on Americans’ credit cards rose by $24 billion to $1.23 trillion in the third quarter of this year, an all-time high. Credit card debt is up nearly 6% year over year.
Auto loan balances remained steady at $1.66 trillion, according to the report.
“While there are some challenges at the household level — consistent with that K-shaped economy where the rich get richer and the poor get poorer — the macro picture is pretty bright,” Rossman said.
Source: abcnews.go.com
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