U.S. household debt rose by $185 billion in the second quarter of 2025, reaching a record $18.39 trillion, according to a report released by the Federal Reserve Bank of New York.

The 1% increase from the previous quarter was driven largely by rising mortgage balances, which grew by $131 billion to $12.94 trillion. Credit card debt also surged, adding $27 billion to reach $1.21 trillion, while auto loan balances climbed $13 billion to $1.66 trillion.

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Student loan balances inched up $7 billion to $1.64 trillion. But more notably, delinquency rates for student debt rose sharply due to the resumption of credit reporting for missed payments that occurred during the so-called "pandemic pause." As a result,

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