By the numbers:
- $18.39 trillion — total household debt in the second quarter of 2025, up $185 billion from the first three months of the year.
- $1.21 trillion — credit card balances, up $27 billion from Q1.
- 12.88% — share of student loans that are at least 90 days delinquent.
What’s happening: The Federal Reserve Bank of New York’s second quarter Household Debt and Credit Report shows steady overall debt growth but a troubling spike in student loan delinquencies, especially among older borrowers.
Mortgage balances remain the largest slice of consumer debt at $12.94 trillion, growing by $131 billion in the quarter. Auto loans rose to $1.66 trillion, boosted by a jump in new originations ($188 billion, up from $166 billion in Q1). Credit card balances continued their climb, now at record levels.
But the headline concern is student loan performance. Following the resumption of reporting on delinquent accounts, 10.2% of all student loan debt is now at least 90 days past due. For borrowers over the age of 50, the number is far worse. Nearly 18% became seriously delinquent in the second quarter, up from around 10% in 2019.
Why it matters:
- Many older borrowers took on loans for their children’s education or returned to school themselves. Approaching retirement, they face fewer earning years to recover from delinquency.
- The Trump administration has resumed pursuing collection of past-due federal student loans after a nearly five-year pause, with wage garnishments expected to restart later this summer. Social Security offsets are paused, but have not been permanently ruled out.
- Overall, auto and credit card serious delinquency rates held steady, while mortgage and HELOC delinquencies inched higher.
The bottom line:
