Total U.S. household debt climbed to a record $18.39 trillion in the second quarter of 2025, according to the Federal Reserve Bank of New York. The figure marked a 1 percent increase from the first quarter, when debt stood at $18.25 trillion. Growth occurred across most categories, with mortgages making up the largest share.
Mortgage Balances Drive Overall Growth
Mortgage balances rose by $131 billion to reach $12.94 trillion nationwide. Mortgage originations also ticked upward, totaling $458 billion. Home Equity Lines of Credit, or HELOCs, increased for the 13th consecutive quarter, adding $9 billion. Despite higher borrowing, mortgage and HELOC delinquencies remained historically low, at 1.29 percent and 1.15 percent respectively.
Credit Cards and Auto Loans Add Pressure
Credit card balances grew by $27 billion, pushing the nationwide total to $1.21 trillion. Auto loans increased $13 billion to $1.66 trillion. Both categories maintained stable delinquency rates, showing resilience despite persistent inflationary pressures. Still, households continue to carry significant balances as borrowing costs remain elevated compared with pre-pandemic levels.
Student Loan Delinquencies Rising
Student loan debt increased by $7 billion, reaching $1.64 trillion. While the overall growth was modest, delinquency rates worsened sharply. The share of loans in serious delinquency climbed to 12.9 percent, up from just 0.8 percent a year earlier. The change reflects the resumption of student loan payments following pandemic-era relief, straining many borrowers.
Community and Economic Impact
For San Gabriel Valley residents and beyond, the data underscores the challenges of household budgeting in a high-cost environment. Stable mortgage performance signals financial resilience, but growing student loan distress could affect younger households’ ability to rent, buy homes, or invest locally. Policymakers and financial institutions are closely watching these trends as consumer spending accounts for nearly 70 percent of the U.S. economy.
More detailed findings are available from the Federal Reserve Bank of New York’s quarterly report at newyorkfed.org and coverage from Reuters.
