"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."
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.
Read at 24/7 Wall St.
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