The Q3 2025 Household Debt and Credit report released by the Federal Reserve Bank of New York in November paints a mixed picture of the consumer economy. Aggregate household debt continues to climb, rising $197 billion since Q2 to reach $18.59 trillion. That’s an increase of $4.4 trillion, or 29.5%, since the end of 2019.
The increases were spread across most areas of credit, though auto loans held mostly steady.
- Mortgage balances increased by $137 billion during the third quarter, to a total of $13.07 trillion
- Home equity lines of credit (HELOC) balances jumped by $11 billion, to a total of $422 billion
- Credit card balance climbed $24 billion, to an aggregate $1.23 trillion––a 5.75% increase compared with Q3 of 2024
- Outstanding student loan debt increased by $15 billion, to $1.65 trillion
New mortgage originations increased slightly during Q3, with credit scores for new originations similar to Q2. New auto loans dipped, though, likely due to a tightening of the subprime auto loan market. Credit scores for the lowest 10% of auto loan borrowers were 9 points higher than in the spring.
Household Debt Delinquency
Overall, the percentage of household debt balances that was in some stage of delinquency held relatively stable compared with the previous quarter. About 4.5% of all debt is at least 30 days past due. Transitions into delinquency–accounts that were previously current and fall 30 days behind, were also steady.
However, delinquencies and default were inconsistent across types of debt and age groups.
- 9.4% of the $1.65 trillion in outstanding student loan debt is at least 90 days delinquent
- The percentage of outstanding credit card debt that is at least 90 days delinquent has been climbing since early 2023, and is now over 12%
- Transitions to serious delinquency (at least 90 days past due) were highest in the 18-29 age group and declined with age
Despite the youngest adults dominating fresh serious delinquencies, older people made up the bulk of new bankruptcy filings, with the largest number among those aged 40-49, followed by 50-59 and 30-39.
Q3 2025 Debt in California
California fared better than average in most areas. Household debt in the state is significantly higher than average, in large part due to high mortgage loan balances. But both transitions to 30 days past due and transitions to 90 days past due are lower in California than the national average, and transitions to 30 days past due have declined slightly since the beginning of the year.
What Does this Mean for My Finances?
While there haven’t been any dramatic changes compared with the prior quarter, household debt in the U.S. continues to grow at a concerning rate–particularly when you consider that the aggregate debt Americans are carrying has increased by nearly 30% since just before the Covid-19 pandemic.
Inflation and unemployment are both creeping upward, and so are bankruptcy filings and new foreclosure filings. It’s a good time to be very conscious of your budget and to carefully assess how you’re handling debt.
If you’re already struggling with debt, it’s a good time to do your homework and find a solution. Too often, the people who come to our office for help with debt resolution report that they’ve been juggling payments and living with financial stress for a long time. In many cases, that means they’ve thrown away thousands of dollars in interest and late fees before recognizing that they needed to explore their options.
At Borowitz & Clark, we’ve helped thousands of people resolve debt and clear the way for a more stable financial future. We know reliable information is the first step toward making a change, so we offer free consultations to people who are overwhelmed by debt in or around Los Angeles. You can schedule yours right now by calling 877-439-9717 or filling out our contact form.