Household Debt Just Hit a New Record — Are You at Risk?
Written by
Stacy Sare Cohen
Edited by
Rebekah Evans
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Total household debt in the U.S. hit $185 billion in the second quarter of 2025. The $18.39 trillion increase was tallied from the balances of mortgages, home equity lines of credit (HELOC), auto loans and credit cards.
Debt has increased $4.24 trillion since the last quarter of 2019, according to the New York Fed’s latest Household Debt and Credit Report released in August 2025. Below, GOBankingRates takes a closer look at where the debt has risen — and whether you’re at risk.
Also Dave Ramsey said this is how you make sure you don’t go broke.
Mortgages
Mortgages accounted for the most significant portion of household debt, with balances increasing by $131 billion at the end of June 2025, reaching a total of $12.94 trillion. Mortgage originations ticked up slightly, reaching $458 billion in the second quarter. Borrower credit scores were slightly higher, but 53,000 homeowners were in foreclosure, according to the report.
Home Equity Lines of Credit (HELOC)
Homeowners are continuing to borrow against their homes. Balances on home equity lines of credit grew by $9 billion in the second quarter, marking the 13th straight increase, said the New York Fed. Total outstanding balances now stand at $411 billion, nearly $100 billion higher than they were in early 2022.
Credit Cards
Credit card balances jumped to $27 billion in the second quarter, bringing the total credit card debt to $1.21 trillion, reported the New York Fed.
However, it’s not a surprise, Matt Schulz, chief credit analyst at LendingTree, told CNBC. Due to relentless inflation, many Americans have seen their financial margins shrink from “slim to about none,” leading them to rely more heavily on credit cards, Schulz said. Delinquency increased 6.93%, according to the New York Fed, a sign that more Americans are struggling to keep up with their monthly bills.
Auto Loans
Auto loan balances also increased, rising by $13 billion in June 2025, totalling $1.66 trillion. New auto loans and leases increased to $188 billion during the second quarter, up $22 billion from $166 billion during the first quarter of 2025.
Credit scores for new auto borrowers dropped to a median of six points, indicating that more people with weaker credit are struggling to finance a car.
Student Loans
Student loan balances ticked up by $7 billion in June 2025 to a collective $1.64 trillion. What stands out, though, is delinquency. With missed federal student loan payments now showing up on credit reports again, more than 10% of balances are 90 days past due.
That’s a significant increase and highlights how repayment has been challenging for many borrowers, who have faced added financial pressure due to the end of federal relief programs. According to New York Fed researchers, 4.4% of debt is in delinquency.
Are You at Risk?
Overall, the report indicates that 4.4% of household debt is now delinquent and approximately 131,000 people filed for bankruptcy in the second quarter — a rise from earlier in the year. Credit cards and student loans are where the most stress is showing. However, that doesn’t mean you’re in danger.
However, you could be at risk if you’re carrying high-interest credit card balances, missing student loan payments or taking on new loans without a repayment plan or emergency savings.
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