US Consumer Debt Nears $18T As Delinquencies Stabilize

Equifax (NYSE: EFX) has recently released its Market Pulse Third Quarter U.S. Consumer Credit Trends, which now reportedly includes U.S. national consumer credit data and trends through September 2025 sourced from Equifax data. According to Equifax, delinquency on total U.S. consumer debt inched up to “1.562% in September, a slight increase from 1.517% at end of the second quarter in June 2025.”

Total consumer debt reached “$18.03 trillion in Sept, up from $17.91 trillion in August and $17.94 trillion in July.”

Tom O’Neill, Market Pulse Advisor at Equifax said:

“Specifically within auto loans, we are seeing a more pronounced rise in delinquency rates for newer auto loans, defined as loans taken in the last 24 months, within the near-prime and prime populations.”

They added:

“This indicates that some economic stresses that some consumers are facing aren’t confined to the lower credit tiers. Should these pressures continue, the impact on lenders may fall outside of traditional consumer payment hierarchies.”

Historically, households prioritize mortgages and auto loans, but stress caused by developments in other credit categories, like “student loan wage garnishment, may disrupt that predictability.”

During the pandemic period, severe delinquency rates “fell to historically low levels, with rates as low as 1.0%, and 1.3% for auto loans and bankcards more than 60 days past due.”

The update from Equifax also noted that from those levels, delinquency rates rose and both of those lending products “saw delinquency rates level off at slightly higher than pre-pandemic levels by 2023 and hitting peaks in early 2024 of 1.6% for auto and 3.2% for bankcards.”

Despite remaining above pre-pandemic levels, delinquencies have “stabilized, with bankcard delinquencies even slightly decreasing to 2.7%.”

Auto loan and lease debt totaled $1.68 trillion in Sept, “up 1.4% over September 2024.”

Lease balances grew “11.5% compared to Sept 2024 to $95.8 billion in September 2025, and delinquencies were slightly down year-over-year to 0.46% in the same timeframe.”

Meanwhile, loan balances increased only “0.8% to $1.587 trillion from Sept 2024 to Sept 2025 and delinquencies edged up to 1.64% in the same time period.”

Rising prices for new and used vehicles, “hefty insurance premiums, and elevated interest rates have increased the costs of car ownership and contributed to shifting behaviors among consumers.”

O’Neill added:

“The auto sector is often an indicator for consumer stress, as auto loans typically sit near the top of household payment priorities. Faced with the high costs of car ownership, many consumers seem to be turning to alternatives. As a result, we’re seeing steady growth in leasing, and some borrowers are stretching out loan terms to manage affordability.”

Bankcard balances reached $1.08 trillion in September of this year, “up 4.0% from September 2024, and accounts rose to 586.2 million, up 6.3% year-over-year.”

The delinquency rate of more than 60 days past due “rose slightly from August to Sept 2025 to 2.83%, but is down from 3.01% from Sept 2024 to 2025.”

Heading into the upcoming festive season, private label card balances and accounts are down in September, with “an 11.7% decrease in balances and 25.5% decrease in accounts YoY as consumers appear to look to the flexibility of general-purpose alternatives.”

Younger generations are also foregoing opening “private label credit cards as their first credit product, favoring alternatives like co-branded cards or Buy Now, Pay Later options.”

Student loan delinquencies began leveling off “around 18% and are showing signs of stabilization.”

The severe delinquency rate – non-deferred loans “more than 90 days past due or in bankruptcy – was 16.32% in September, up sharply from 0.79% a year ago before reporting delinquencies on unpaid student loans resumed.”

Outstanding student loan debt rose slightly to “$1.34 trillion in September 2025, but was 4.8% lower compared to September 2024.”

Accounts grew to 147.4 million in September, “down 8.6% from 161.1 million a year ago.”

Historically, the report said that student loan debt has been a relatively lower priority for consumers when compares to mortgage and auto obligations. But now, the prioritization of student loan repayment could “become a higher priority for consumers when wage garnishment on delinquent loans resumes.”