US Household Debt Surges to $18 Trillion, Delinquencies Rise

US household debt has reached a staggering $18.04 trillion, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit. This figure represents a 21-year high and a significant increase of $93 billion from the previous quarter, as well as a $3.9 trillion surge since the end of 2019.

Mortgages account for the majority of US household debt, standing at $13 trillion by the end of December 2024. Auto loans follow with $1.66 trillion, student loans at $1.61 trillion, credit cards at $1.21 trillion, and other types of debt at $550 billion.

The report also highlights a concerning trend in delinquency rates. As of the fourth quarter of 2024, 11.4% of credit card balances have been left unpaid for at least 90 days, up from 9.4% in the same quarter of 2023. Additionally, 9.2% of other types of loans are delinquent for 90 days or more. Auto loans, mortgages, student loans, and home equity line of credit (HELOC) delinquency rates also increased, albeit at lower rates.

Overall, aggregate delinquency rates rose slightly to 3.6% in the fourth quarter of 2024, up from 3.5% in the previous quarter. The transition into serious delinquency, defined as 90 or more days past due, edged up for auto loans, credit cards, and HELOC balances but remained stable for mortgages.

Amid these rising delinquency rates, around 123,000 Americans had a bankruptcy notation added to their credit reports in the last quarter of 2024. This indicates a growing financial strain on households, with many struggling to keep up with their debt obligations.