US Witnesses Sharp Surge in Household Debt Delinquency

RunWithRugs · 2026-02-25T18:45:49+00:00

American household debt delinquency rose to 4.8% in Q4 2025, according to the Federal Reserve Bank of New York. Mortgage and student loan defaults increased, while other borrowing remained stable, indicating a concerning trend in payment defaults.

RunWithRugs

2026-02-25 18:45:49

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(MENAFN) American household debt delinquency rates climbed sharply in the final quarter of 2025, marking a troubling acceleration in payment defaults, the Federal Reserve Bank of New York disclosed Tuesday.

The central bank’s latest Quarterly Report on Household Debt and Credit revealed that 4.8 percent of all outstanding debt had entered delinquency status by December’s close—a 0.3 percentage point spike from the preceding three-month period.

Early-stage delinquencies showed divergent patterns across debt categories. Mortgage and student loan defaults rose, while other borrowing segments remained stable.

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