U.S. Household Debt Delinquency Worsened Slightly In Q4 2025

U.S. household debt delinquencies did worsen modestly in Q4 2025, but from still‑low levels by historical standards, with stress concentrated among lower‑income and younger borrowers.

Headline numbers

• Total household debt reached about $18.8 trillion in Q4 2025, up roughly $191 billion (about 1%) from Q3.

• About 4.8% of outstanding household debt was in some stage of delinquency at the end of December 2025, up 0.3 percentage points from Q3 (4.5%).

• That 4.8% delinquency rate is the highest since 2017, though still near pre‑pandemic norms, not crisis levels.

By loan type

• Mortgages: Balances rose to about $13.17 trillion, with new and serious delinquencies ticking up; the 90‑day‑plus delinquency rate is still under 1% but has moved higher from 2024.

• Credit cards: Balances climbed to roughly $1.28–1.3 trillion, with serious delinquencies edging up, even as very‑early (30‑day) delinquencies were mostly stable or slightly lower.

• Auto loans: Balances increased modestly to about $1.67 trillion, with serious delinquencies flat to slightly down compared with Q3.

• Student loans: Around $1.66 trillion in balances, with roughly 9–10% of loans seriously delinquent and a very large inflow into delinquency after pandemic‑era forbearance ended, making this the most troubled category.

What “worsened slightly” means

• The overall move from 4.5% to 4.8% delinquent debt is a gradual deterioration, not a sudden spike.

• Serious delinquencies are rising for mortgages, credit cards, and student loans, while auto loans and HELOCs show small improvements.

• Economists highlight that problems are concentrated in lower‑income areas and regions with weakening job or housing markets, while higher‑income households remain relatively resilient.

Macro context

• Household debt grew about $740 billion over 2025 in total, and about $4.6 trillion since late 2019, reflecting higher prices, interest rates, and borrowing.

• The picture is a “two‑speed” consumer sector: many households are still managing their obligations, but a growing share—especially younger and lower‑income borrowers—are falling behind as savings buffers erode and labor markets cool.