Household Debt Reaches New All-Time High, NY Fed Data Shows
U.S. household debt reached a new all-time high in the first quarter of the year, clocking in at $18.8 trillion, according to data from the New York Federal Reserve.
Mortgages and auto loans pushed the figure higher. The former now stands at $13.2 trillion and the latter at $1.69 trillion. In turn, student loan debt decreased slightly, but the data showed, many borrowers are falling behind: more than 10% of balances are now past due.
Credit card debt also decreased, in this case by $25 billion. Outstanding balances now stand at $1.25 trillion. Researchers at the New York Fed described the situation as “stable” but pointed at weaknesses among younger consumers and low-income households.
The report follows a survey showing that consumer borrowing in the U.S. rose to the highest level since late 2022.
Data from the Federal Reserve showed that total credit outstanding climbed by almost $25 billion, exceeding the expectations of all economists surveyed by Bloomberg.
Non-revolving credit climbed by almost $15 billion in March, the highest figure since mid-2023. Pending credit card debt increased by $10 billion, the most since 2024.
The report noted that household finances are being impacted largely by the increase in oil prices resulting from the war in Iran.
In fact, most Americans believe the U.S. made the wrong decision in using military force against Iran, while financial pressures and rising costs continue to shape public anxiety, according to a recent poll by ABC News, The Washington Post and Ipsos.
40% of respondents said they are worse off financially than when President Donald Trump took office in 2025, while 42% say they are about the same and just 17% say they are better off. A separate question shows 23% say they are falling behind financially.
Half of Americans in the survey say they expect gas prices to rise further over the next year. Many are already adjusting behavior, with 44% reporting they have cut back on driving, 42% saying they have reduced household spending, and 34% saying they have changed travel plans.
The latest inflation figure, released Tuesday, showed continued upward pressure across housing, energy, transportation and services. Soaring energy prices largely contributed to the increase.
The report showed that both headline and underlying price measures moved higher over the month, driven largely by housing-related expenses and energy costs. Shelter, which includes rent and owners’ equivalent rent, remained one of the strongest contributors to the overall index, continuing a pattern that has persisted over multiple reporting periods.
Consumer Price Index (CPI) increased 0.6% on a monthly basis and 3.8% over the past 12 months. Core CPI, which excludes food and energy, rose 0.4% on a monthly basis and 2.8% annually, underscoring continued underlying price pressure across services and housing.
Energy prices added further pressure to the monthly figures, influenced in part by volatility in global oil markets. The Bureau of Labor Statistics said the costs are “accounting for over forty percent of the monthly all items increase.”
