NEW YORK (LOOTPRESS) – Americans’ total household debt has surged to a record $18.04 trillion, fueled by rising credit card balances and auto loans, according to a report released Thursday by the Federal Reserve Bank of New York.
Debt increased by $93 billion in the last quarter of 2024, with nearly half of that growth coming from new credit card debt. Americans now hold a record $1.21 trillion in credit card balances, reflecting the impact of holiday shopping and high interest rates, researchers said.
Rising Auto Loan Delinquencies
Auto loan debt has climbed to $1.7 trillion, with delinquency rates rising as more Americans struggle to keep up with payments. Federal Reserve researchers pointed to higher vehicle prices—a lingering effect of the pandemic—as a key reason why some borrowers have fallen behind.
Economic Outlook
Despite mounting debt, researchers noted that income levels are also rising, which helps offset concerns about financial instability. However, missed payments on credit cards and auto loans have increased, signaling potential challenges ahead.
“While mortgage delinquency rates are similar to pre-pandemic levels, auto loan delinquency transition rates remain elevated,” said Wilbert van der Klaauw, economic research adviser at the New York Federal Reserve. “High auto loan delinquency rates are broad-based across credit scores and income levels.”
As Americans work to pay down their credit card balances in early 2025, economists will be watching whether overall debt levels stabilize—or continue to climb.
