Household debt reached record $18.39 trillion in Q2

U.S. household debt increased to a record $18.39 trillion in the second quarter amid a rise in mortgage balances, according to the latest Report on Household Debt and Credit..Total debt increased $185 billion from the first quarter, according to the Aug. 5 report from the Federal Reserve Bank of New York. Mortgage balances increased $131 billion to a record $12.94 trillion by the end of June. New mortgage originations also saw a modest increase, totaling $458 billion for the quarter.Credit card debt increased 2.3 percent from the first quarter to $1.21 trillion, up nearly 6 percent on an annualized basis. Nearly 7 percent of balances had transitioned to delinquency over the past year, according to the report. Auto loan balances increased $13 billion to $1.66 trillion. HELOCs continued growing, rising for the 13th straight quarter, this time by $9 billion to $411 billion. That’s $94 billion above their early 2022 low.Non-housing debt — credit cards, auto loans, student loans, and other consumer finance — increased $45 billion, a nearly 1 percent increase from the first quarter of 2025. Delinquency rates on outstanding debt, at 4.4 percent of total outstanding debt, signaled ongoing financial strain among some consumers, according to the report.Student loan balances slightly increased, up $7 billion to $1.64 trillion, amid a continued rise in delinquencies following the resumption of delinquency reporting.