Americans' household debt continued its steady climb to hit a record $18.8 trillion, according to the New York Fed's quarterly report on household debt.
by CORY SMITH | The National News Desk Several subcategories of household debt – mortgages, auto loans, and home equity lines of credit – all increased last quarter.
Student loans and credit cards both fell. The drop in student loan balances was relatively small, and it’s typical for credit card balances to fall in the first quarter as consumers use tax refunds and New Year’s resolutions to pay down their debt. Bankrate Principal Analyst Ted Rossman said some folks might be alarmed to see total household debt reach nearly $19 trillion.
“Seventy percent is mortgage debt,” he said. “So, that's good debt in the sense that you're building equity, you've got a nice place to live, that you can make your own. ”The delinquency rates for credit cards and student loans are 13% and 10%, respectively, he said. But even student and credit card debt, as reflected in the report, isn’t necessarily bad, Rossman said.
And the New York Fed report doesn’t distinguish between what's paid in full and what's not when it reports credit card balances, which now stand at $1.25 trillion.
“Where the rubber really meets the road is at the household level,” Rossman said. “If you're someone who's the transactor that's using the card, paying it off right away, getting the airline miles, that's actually a good thing for you personally and for the economy. If you're stuck with a 20, or 25, or 30% interest rate, and you're going to be in debt for the next however many years, that's the problem.
” Rossman said the average credit card balance is around $6,700, citing TransUnion figures. If you make minimum payments towards that debt at the average interest rate, about 19.4%, you'll be in debt for 18 years and end up paying more in interest than you charged in the first place, Rossman said. , work with the reputable nonprofit credit counselor, take on the side hustle. This is one where you really need to pay a lot more than the minimum.
” Rossman said rising household debt reflects a growing economy. And he said credit card balances will grow as more people stop using cash.
“I feel like debt so often gets labeled this dirty word, but I would point out that some of this is reflective of a growing, consumer-driven economy,” Rossman said. “Some of it also is actually good debt, in the sense that owning a home can actually be a real wealth-builder over time. ”Much of the data from last quarter’s household debt report doesn't reflect the recent spike in gas prices.
“It does stand to reason that higher oil and gas prices could have effects, not just on what we put into our cars, but airline fares, we're already seeing that, transporting goods from point A to point B,” he said. “A real canary in the coal mine there could beand showed much higher jumps than expected. And that is what businesses are paying along the supply chain, and then later on that can filter into consumer prices.
”could be keeping consumer spending strong. That’s a widening split between high- and low-income consumers, with wealthier households powering the economy. Rossman also said people might actually have more spending power than they realize, considering the job market's relative strength.
“It's not all rosy,” he warned, noting that there are also folks taking on debt or dipping into savings just to make ends meet. “If you only looked at consumer sentiment, you would think we've been in a deep recession for years now. The actual numbers have been climbing that wall of worry,” Rossman said.
“There's got to be a tipping point out there somewhere. We don't quite know where it is, and we haven't reached it yet. ”Pennsylvania Capitol police coordinated a multi-agency DUI checkpoint in Harrisburg over the weekend that ended with 13 arrests being made, police data shows. A Pennsylvania mother is calling for accountability as her children recover from being hit by a car driven by a former sheriff's deputy.
A Lancaster County woman claims she was not allowed on her flight because of her disability. A massive dirt pile in Steelton not only caused headaches for those who live nearby, but was also found to be in violation of Pennsylvania law multiple times. A West Shore Regional police officer was charged with a DUI after being pulled over in October 2025, according to charging documents.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New poll finds a majority of Americans unsure if attempts on Trump's life were realWhen given the options of 'true,' 'false' or 'not sure,' and asked whether each of the incidents 'was staged,' a majority of respondents said they thought each event was either staged or were unsure.
Read more »
Americans broadly support age limits for congressional candidates, new poll showsShannon Ogden co-anchors Denver7’s weeknight newscasts at 5, 6 and 10 o’clock. You can watch him weekdays at 5, 6 and 10 p.m.
Read more »
Walmart braces for new $18 California law — it's slightly different for every cityToday's Video Headlines: 05/11/26
Read more »
2026 FIFA World Cup in New York and New Jersey: Transportation and Fan UpdatesAs the 2026 FIFA World Cup gets closer, New York and New Jersey are rolling out new transportation plans, youth programs, and fan updates tied to the world's biggest sporting event. NJ Transit has lowered the price of World Cup train tickets well ahead of the sale.
Read more »