Americans are carrying more debt than ever before, with total household liabilities soaring to $18.59 trillion between July and September, according to new data from the Federal Reserve Bank of New York.
That’s a $197 billion jump from the previous quarter and a staggering $4.4 trillion more than what was owed at the close of 2019. The report tallied mortgages, auto loans, credit cards, and student loans.
Student loan debt reached a record $1.65 trillion, and delinquencies are on the rise. Nearly 10% of student loan balances are now more than 90 days overdue. The Fed notes that paused payments during the pandemic were not reported to credit agencies until recently, distorting current delinquency data.
“Missed federal student loan payments that were not previously reported to credit bureaus between 2020 Q2 and 2024 Q4 are now appearing in credit reports,” the report stated.
Credit card debt also hit a new peak, climbing $24 billion in the third quarter to a total of $1.23 trillion, up 6% from a year ago. Auto loan balances held steady at $1.66 trillion.
“Student loan delinquencies are at a record high, but auto loan and credit card delinquencies aren’t as high as they were in the middle of 2024,” said Ted Rossman, senior industry analyst at Bankrate.
Now, with the government shutdown halting paychecks to some federal employees and other benefits being stalled, there is a chance that debt will only increase across the country in the coming months.
