American consumer debt hits record high of $18.2 trillion in Q1 2025, presenting challenges for credit access
From Yahoo Finance: 2025-05-19 11:15:00
American consumer debt reached $18.2 trillion in Q1 2025, per the NY Fed. Credit card and auto loan balances decreased, but student loan and mortgage balances rose. Student loan debt drove delinquent debt up by 4.3%.
Despite lower credit card and auto loan balances, Americans’ consumer debt hit an all-time high of $18.2 trillion in Q1 2025, per the NY Fed. Credit card balances dropped by $29 billion, auto loan balances by $13 billion.
Auto loan balances fell for the first time since 2011, surprising analysts. Student loan and mortgage balances increased. Delinquency rates rose with 4.3% of debt in delinquency.
Student loan delinquencies jumped from 1% to 7.74% in Q1, affecting credit scores. Borrowers with subprime scores and above 620 saw significant drops. This may impact future credit access, especially for mortgages.