American families reached a new milestone in the third quarter of 2025, but it’s not one they’re celebrating at the dinner table. Total household debt climbed past $18.59 trillion, growing by $197 billion in just three months. That’s like every American household suddenly owing an extra $1,500 compared to the previous quarter.
American households now owe an eye-watering $18.59 trillion, adding $1,500 per family in just three months.
The biggest chunk of this debt mountain comes from mortgages, which make up about 70% of what families owe. Mortgage debt alone reached $13.07 trillion, growing by $137 billion as Americans continued buying homes despite economic uncertainty. Think of it as a really expensive game of musical chairs, except the chairs are houses and the music never stops. Mortgage originations reached $512 billion in the third quarter, showing continued activity in the housing market. The stability in mortgage performance can be attributed to ample home equity that many homeowners possess.
Credit cards tell an interesting story too. While balances grew to $1.23 trillion, individual consumers only added about $36 to their average debt over the year. Millennials carry around $6,961 on their cards, while Gen X leads the pack with $9,600. With interest rates hovering near 22%, paying off these balances feels like running uphill in quicksand.
Student loans present a more troubling picture. The $1.65 trillion in student debt saw delinquency rates jump dramatically from less than 1% to over 14% in just one year. This suggests many borrowers are struggling to keep up with payments as they navigate post-graduation financial realities.
Auto loans remained steady at $1.66 trillion, showing Americans still need reliable transportation regardless of economic conditions. Meanwhile, home equity lines of credit grew to $422 billion as homeowners tapped into their property values for extra cash.
The most concerning trend appears in overall delinquency rates, which nearly doubled from 1.68% to 3.03% for seriously overdue accounts. This means more families are falling behind on payments, creating a warning signal about financial stress beneath the surface.
Despite these challenges, the continued growth in mortgage originations and steady auto loan balances suggest American consumers remain resilient. They’re adapting to economic pressures while still pursuing major life goals like homeownership and reliable transportation.
