From rising mortgage balances to growing credit card bills, Americans are carrying more debt than ever.
A new report from the Federal Reserve Bank of New York shows total household debt reached $18.6 trillion this fall, up nearly $200 billion in just three months.
According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, total household debt is now $4.44 trillion higher than it was at the end of 2019, before the pandemic recession, reflecting steady borrowing across nearly all major categories of consumer debt.
Student loan balances rose by $15 billion to $1.65 trillion in the third quarter. Delinquencies are also rising, with 9.4 percent of student debt now at least 90 days past due compared to 7.8 percent in the first quarter.
The increase comes as missed federal student loan payments that were not reported to credit bureaus during the 2020 to 2024 repayment pause are now being added back to credit files.
Mortgage balances, which make up the largest share of household debt, grew by $137 billion, reaching $13.07 trillion by the end of September. Mortgage originations, which include both refinances and new home loans, rose slightly to $512 billion.
Home equity lines of credit (HELOCs) continued to increase for the 14th consecutive quarter, rising $11 billion to $422 billion, now more than $100 billion above their 2022 low.
Still, signs of strain are showing. About 55,000 new foreclosure notations appeared on credit reports during the quarter, an increase from the previous three months.
Credit card balances rose by $24 billion to reach $1.23 trillion, about 5.7 percent higher than this time last year. Auto loan balances held steady at $1.66 trillion, while new auto loans declined slightly to $184 billion.
Other consumer debt, including retail cards and personal loans, grew by $10 billion to reach $550 billion. Credit limits also expanded, with total credit card limits increasing by $94 billion and HELOC limits growing by $8 billion.
Overall, 4.5 percent of household debt was in some stage of delinquency, about the same as last quarter. Serious delinquencies, defined as 90 days or more past due, remained stable for most loan types but edged up slightly for HELOCs and student loans.
Roughly 141,000 consumers had a bankruptcy added to their credit reports in the third quarter, a modest increase from earlier in the year.