According to the Federal Reserve and New York Fed, U.S. Household Debt Hit a Record High in 2025 💸📉
- **Total Household Debt:**
💰 $18.2 trillion in Q1 2025, up $167 billion from the previous quarter.
- **Mortgage Debt:**
🏠 $12.8 trillion, increased by $199 billion in Q1 2025.
- **Credit Card Debt:**
💳 $1.18 trillion, with average balances around $7,300; delinquencies are rising, especially among lower-income households.
- **Student Loan Debt:**
🎓 $1.63 trillion, up $16 billion in Q1 2025; millions are struggling with resumed payments and higher delinquency rates.
- **Auto Loan Debt:**
🚗 $1.64 trillion, with delinquencies at a 30-year high for subprime borrowers.
- **Buy Now Pay Later (BNPL):**
🛒 Usage surging, with 1 in 5 Americans using these services and about 40% making late payments in the past year.
### ⚠️ Economic Impact
- Household budgets are squeezed by high debt and interest rates, leading to reduced spending on goods and services.
- Rising delinquencies and defaults could tighten credit and slow economic growth, increasing the risk of recession.
- Subprime borrowers and lower-income families are facing the most financial stress, with credit card and auto loan delinquencies at multi-year highs.