By the end of 2025, American households accumulated $18.8 trillion in debt, a significant increase of $4.6 trillion since 2019. Mortgages account for the majority, with home loan balances at $13.17 trillion. Non-housing debts, such as credit card balances at $1.28 trillion and auto loans at $1.66 trillion, are rising sharply. The personal savings rate has decreased from 6.2% to 4.0%, indicating that many households are relying on credit cards to finance their spending despite increased disposable income.
"Mortgages are doing the heavy lifting, and the math is hard to ignore. Home loan balances closed December 2025 at $13.17 trillion, with another $433 billion in home equity lines of credit that have climbed for fifteen straight quarters without once looking back."
"Credit card balances punched through $1.28 trillion, up 5.5% in a single year, while auto loans landed at $1.66 trillion. These are the categories that hit hardest when household budgets get tight."
"Americans are earning more and saving less, with the personal savings rate sliding from 6.2% two years ago to 4.0% today, even as disposable income has climbed."
Read at 24/7 Wall St.
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