The Center for Microeconomic Data at the Federal Reserve Bank of New York released its Quarterly Report on Household Debt and Credit. According to the research, household debt rose by $185 billion (1%) to $18.39 trillion in Q2 of 2025. Data from the New York Fed’s nationally representative Consumer Credit Panel served as the basis for the report. A one-page synopsis of the main conclusions and the evidence behind them is included.
Alongside the data mentioned, the New York Fed published a blog article from Liberty Street Economics that examined borrower patterns in the mortgage market by area, credit score, delinquency rates, and balances.
“This quarter’s flow of household debt into serious delinquency was mixed across debt types, with credit card and auto loans holding steady, student loans continuing to rise, and mortgages edging up slightly,” said Joelle Scally, Economic Policy Advisor at the New York Fed. “Despite the recent uptick in mortgage delinquency, overall mortgage performance remains strong by historical standards.”
Key Findings — National
- Outstanding student loan debt stood at $1.64 trillion in Q2 2025.
- Missed federal student loan payments that were not previously reported to credit bureaus between Q2 2020 and Q4 2024 are now appearing in credit reports. Consequently, student loan delinquency rates continued to rise.
- In Q2 2025, 10.2% of aggregate student debt was reported 90+ days delinquent.
Household Debt and Credit Developments as of Q2 2025
| Category | Quarterly Change* (Billions $) | Annual Change** (Billions $) | Total As of Q2 2025 (Trillions $) |
| Mortgage Debt | (+) $131 | (+) $416 | $12.94 |
| Home Equity Line of Credit (HELOC) | (+) $9 | (+) $31 | $0.411 |
| Student Debt | (+) $7 | (+) $53 | $1.638 |
| Auto Debt | (+) $13 | (+) $29 | $1.655 |
| Credit Card Debt | (+) $27 | (+) $67 | $1.209 |
| Other | (-) $2 | (-) $4 | $0.540 |
| Total Debt | (+) $185 | (+) $592 | $18.388 |
Note: *Change from Q1 2025 to Q2 2025
** Change from Q2 2024 to Q2 2025
At the end of June 2025, mortgage balances stood at $12.94 trillion, having increased by $131 billion in the second quarter. Credit card balances were $1.21 trillion, up $27 billion from the prior quarter. Additionally, auto loan balances rose by $13 billion, reaching $1.66 trillion. HELOC balances increased for the twelfth straight quarter, rising $9 billion to $411 billion. At $1.64 trillion, student loan balances increased by $7 billion. Non-housing balances increased by $45 billion overall, which was a 0.9% rise over the first quarter of 2025.
In Q2 2025, there were $458 billion in newly created mortgages, indicating a modest rise in the pace of mortgage originations. Compared to the $166 billion recorded in Q1 of 2025, there were $188 billion more new vehicle loans and leases that showed up on credit reports in Q2. The total amount of credit card account limits increased by $78 billion, or 1.5%, over the previous quarter.
In Q2, 4.4% of outstanding debt was in some stage of delinquent, indicating that aggregate delinquency rates remained high. With the exception of student loans, the transition into early delinquency remained constant for almost all debt kinds. Due to the restart of reporting outstanding student loans, the rate at which balances moved from current to delinquent increased once more.
All debt categories had a range of transitions into serious delinquency: student loans increased significantly, mortgages and HELOCs marginally increased, and credit card and vehicle loans remained mostly unchanged.
Flow into Serious Delinquency (90 days or more delinquent):
| Metrics | Q2 2024 | Q2 2025 |
| Mortgage Debt | 0.95% | 1.29% |
| Home Equity Line of Credit | 0.51% | 1.15% |
| Student Loan Debt | 0.80% | 12.88% |
| Auto Loan Debt | 2.88% | 2.93% |
| Credit Card Debt | 7.18% | 6.93% |
| Other | 5.42% | 5.42% |
| ALL | 1.59% | 2.91% |
To read the full report, click here.
