Inside U.S. Treasury Secretary Bessant's plan to tackle soaring debt (1:48)
When I dialed up a longtime financial adviser in New York this week and asked whether the latest household debt numbers worried him, he paused.
“Back in 2015, nobody was worried,” he said. “Delinquencies were low. Housing felt stable. Credit was expanding, but it didn’t feel dangerous.”
The Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit shows US household debt climbing to $18.8 trillion in the fourth quarter of 2025, up $191 billion from the previous quarter and $740 billion over the full year.
Since the end of 2019, total household debt has increased by $4.6 trillion.
Mortgage balances rose to approximately $13.17 trillion.
Credit card balances climbed to $1.3 trillion. Auto loans reached $1.7 trillion, while student loans also stood at $1.7 trillion.
Related: Treasury Secretary Bessent reveals plan to tackle soaring $38T debt
What rising delinquencies mean
A loan becomes “delinquent” when a borrower misses a scheduled payment.
Loans that are 90 days or more overdue are considered “seriously delinquent,” a key measure of financial stress because they signal deeper repayment trouble.
In the fourth quarter of 2025, the share of total household debt in some stage of delinquency rose to 4.8%, up from 4.5% in the prior quarter, the highest level since 2017.
Mortgage performance remains stable at the national level, but stress is beginning to build in certain areas.
“Overall, mortgages continue to perform well by historical standards and have risen recently only after having reached artificially low levels during the (COVID-19) pandemic,” economists at the regional Fed bank said in a blog post accompanying the report.
On average, 1.3% of mortgages became seriously troubled last year, a level comparable to pre-pandemic norms.
However, the share of mortgages newly entering serious delinquency rose to 1.4% in Q4, up from 1.09% in the previous quarter.
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The deterioration is concentrated.
“In lower-income areas and in areas experiencing worsening labor markets or housing market conditions, we are seeing mortgage delinquencies grow at a fast pace,” the economists wrote.
Multifamily housing is also showing strain. Seriously delinquent multifamily loans at Freddie Mac have climbed to 0.48%, the highest in at least 21 years. Fannie Mae’s comparable rate has reached 0.75%, approaching levels seen during the 2008 financial crisis.
Student loans remain the most pressured segment
Student debt continues to represent the weakest part of household credit.
The New York Fed reported that 9.6% of student loans are at least 90 days delinquent, “reflecting continued effects from the resumption of payment reporting following the extended pandemic forbearance period.”
The share of student loans flowing into serious delinquency surged to 16.2%, up sharply from 0.7% in the previous quarter.
Credit card and auto loan balances also increased during the quarter. While non-mortgage delinquency rates remain elevated, Fed researchers suggested they may be stabilizing.
“We would characterize overall that delinquency rates have, especially for non-mortgage debt, that they've really stabilized or leveled off,” a New York Fed researcher said during a conference call.
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What it means for crypto
Rising delinquencies mean that tightening financial conditions.
When more households fall behind on payments, it often reflects thinner savings cushions and reduced flexibility in spending.
That matters for risk assets.
Crypto markets are closely tied to retail liquidity and speculative participation.
Higher debt burdens combined with slower labor momentum can reduce disposable income, limiting trading activity. Exchanges have already reported softer transaction volumes in recent months, reflecting weaker retail engagement.
Related: Gold, silver, S&P 500, crypto crash again amid extreme fear
