Total household debt increased by USD93 billion or 0.5% in the fourth quarter last year to USD18.04 trillion. Credit card balances increased by USD45 billion from the previous quarter and reached USD1.21 trillion at the end of 2024. Auto loan balances saw a USD11 billion increase and stood at USD1.66 trillion. Mortgage balances increased by USD11 billion and currently stand at USD12.61 trillion.
Consumers are in pretty good shape in terms of the household debt landscape, largely driven by stable balances and solid performance in mortgage loans, NY Fed researchers said. However, higher car prices combined with higher interest rates have driven monthly payments on auto loans upward and put pressure on consumers across the income and credit score spectrum, particularly affecting lower-income and lower-credit-score borrowers, they said.
