The share of way overdue U.S. household debt has climbed to a post-pandemic high, according to new data, with student loans driving much of the rise.
The share of debt that is past-due has risen in recent quarters, according to New York Fed data, pointing to growing strain on consumers
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The share of way overdue U.S. household debt has climbed to a post-pandemic high, according to new data, with student loans driving much of the rise.
In the second quarter of 2025, 3% of consumer debt was at least 90 days late, up from 2.8% in the January to March period, the Federal Reserve Bank of New York reported on Tuesday.
The rise in overdue payments — or delinquencies — came mainly from student debt with some 10.2% of loan balances 90 or more days late. It's a sharp rise as delinquent student loans started getting reported to credit bureaus again this year after a pandemic-era pause.
Nonetheless, total household debt also rose to a new record of $18.39 trillion, a roughly 1% rise, meaning Americans owe even more money than ever before, across mortgages, car loans, credit cards, and especially student loans.
Delinquency rates overall have been gradually increasing over the past few quarters. Credit card and auto loan delinquencies remained stable quarter-on-quarter, but both were elevated compared to previous years, while mortgage delinquencies rose slightly, data showed.
The numbers point to increasing financial strain on households following a period of high interest rates. A recent slowdown in the labor market, combined with lukewarm consumer spending and economic uncertainty caused by trade tariffs could worsen that picture in the months ahead.
The figures will also play into the U.S. Federal Reserve’s decision over whether or not it will cut rates in September. Last week, Fed chair Jerome Powell said of delinquency rates, “Essentially, you have a consumer that’s in good shape and is spending,” though admittedly “not at a rapid rate.”
Since then, fresh jobs data showed that the U.S. economy added just 73,000 jobs in July with significant downward revisions for the prior two months, making a rate cut more likely. President Donald Trump would even go on to fire Bureau of Labor Statistics Commissioner Erika McEntarfer over the release, claiming without evidence that the data was false.
“This quarter’s flow of household debt into serious delinquency was mixed across debt types, with credit card and auto loans holding steady, student loans continuing to rise, and mortgages edging up slightly,” said Joelle Scally, economic policy advisor at the New York Fed.
“Despite the recent uptick in mortgage delinquency, overall mortgage performance remains strong by historical standards,” she also noted.
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