US household debt hits record $18.8 trillion in three months: Federal Reserve Bank

New York: Household debt in the United States has reached a record $18.8 trillion in the first three months of the year, according to a new survey by the Federal Reserve Bank of New York.

The data shows that the rise was mainly driven by increases in mortgage and auto loans. Total mortgage debt reached $13.2 trillion, while auto loans stood at $1.69 trillion.

The report also noted that credit card, student, and other household debts combined contributed to the overall record level of borrowing across American families.

Student loan debt slightly declined to $1.66 trillion; however, delinquency rates remain high, with more than 10% of student loan balances overdue—comparable to levels seen during the COVID-19 pandemic.

Credit card debt also rose, reaching $1.25 trillion during the same period.

Despite the rising debt burden, analysts said the overall financial system remains stable. However, signs of financial strain are increasingly visible among low-income households and younger borrowers.

On the same day, separate government data showed rising inflation in the US. Annual inflation rose to 3.8% in April, up from 3.3% in the previous month.

According to the US Bureau of Labor Statistics, this marks the highest inflation rate in the past three years.