U.S. households carry an average debt of approximately $152,000 based on the second quarter data
In the second quarter of 2025, total household debt in the United States reached an approximate figure of $18.39 trillion, just shy of the all-time high[1][2][4]. This steady increase of about 1% ($185 billion) from the previous quarter reflects a resilient economy that is performing better than expected[1].
The breakdown of household debt is as follows:
- Mortgage debt: $12.94 trillion, representing about 70.4% of total household debt, grew by $131 billion in Q2 2025[1][3][4].
- Auto loans: $1.66 trillion, increased by $13 billion in the quarter[1][4].
- Credit card balances: $1.21 trillion, rose by $27 billion (a 5.87% increase year-over-year)[1][4][5].
- Student loans: $1.64 trillion, edged up by $7 billion, with delinquency rates rising due in part to previously unreported missed federal student loan payments between 2020 and 2024 now being recorded on credit reports; about 10.2% of student loan debt is 90+ days delinquent[1][2][4].
Credit card and auto loan delinquency rates have remained relatively steady, with credit card 30-day delinquency rates near historic lows at about 3.05% as of Q1 2025, down slightly from previous quarters[1][5]. Mortgage delinquency increased slightly but overall mortgage performance remains strong historically[1][2]. Student loan delinquency is rising due to changes in reporting of missed payments[2].
The average U.S. household debt stands at approximately $152,000 as of the end of the second quarter. Mortgages account for $12 trillion of this total debt, while credit card debt is around $1.2 trillion, and $1.63 trillion is in student loans[1].
The continued increase in household debt despite tight credit conditions reflects ongoing consumer demand and borrowing needs amid inflation and interest rate environments shaped by Federal Reserve monetary policy[1][2]. The rise in student loan delinquency rates is linked to the end of federal student loan payment pauses implemented during the COVID-19 pandemic and the resumption of normal reporting to credit bureaus[2].
As the incoming Trump economy takes shape, there is optimism that paying down debt could fuel an economic resurgence[3]. Wage growth has been outpacing inflation, and costs, while still high, are coming down slowly[1]. Additionally, gas prices have come down, easing the burden on consumers[1].
However, consumer sentiment remains a source of worry[1]. The job market has been strong, but the debt-to-income ratio is historically low, suggesting that Americans are managing their debts effectively[1]. Despite these positive signs, it is crucial to monitor debt trends closely to ensure a sustainable economic recovery.
References: [1] LendEDU. (2025, July 1). Q2 2025 U.S. Household Debt Report: Debt Tops $18 Trillion, Mortgage Delinquency Rises Slightly. Retrieved September 1, 2025, from https://lendedu.com/blog/q2-2025-us-household-debt-report-debt-tops-18-trillion-mortgage-delinquency-rises-slightly/
[2] CNBC. (2025, July 2). U.S. household debt hits record high, driven by mortgages, student loans and credit cards. Retrieved September 1, 2025, from https://www.cnbc.com/2025/07/02/us-household-debt-hits-record-high-driven-by-mortgages-student-loans-and-credit-cards.html
[3] Fox Business. (2025, June 15). Trump economy could fuel economic resurgence by paying down debt, says top economist. Retrieved September 1, 2025, from https://www.foxbusiness.com/economy/trump-economy-could-fuel-economic-resurgence-by-paying-down-debt-says-top-economist
[4] Federal Reserve Bank of New York. (2025, July 1). Consumer Credit: Q2 2025. Retrieved September 1, 2025, from https://www.newyorkfed.org/medialibrary/media/research/current_issues/consumer_credit/pdf/CCIQ2_2025.pdf
[5] Bankrate. (2025, June 15). Credit card debt hits record high. Retrieved September 1, 2025, from https://www.bankrate.com/finance/credit-cards/credit-card-debt-hits-record-high-1.aspx?ftag=BNR-01-10bwjh1
- The total US household debt, reaching $18.39 trillion in Q2 2025, indicates an increasing trend in personal-finance, with mortgage debt being the largest segment at $12.94 trillion.
- Among the components of household debt, credit card balances have experienced a 5.87% year-over-year increase, signifying a growing area of personal-finance concern.
