U.S. household debt delinquency worsened in the fourth quarter of 2025, according to a report issued by the Federal Reserve Bank of New York on Tuesday.
At the end of December 2025, 4.8 percent of outstanding debt was in some stage of delinquency, up 0.3 percentage points from the third quarter, said the latest Quarterly Report on Household Debt and Credit.
Transitions into early delinquency were mixed, with mortgages and student loans increasing while all other debt types held steady.
Meanwhile, transitions into serious delinquency ticked up for credit card balances, mortgages and student loans, while auto loan and home equity line of credit delinquency decreased slightly.
With household debt levels growing modestly, mortgage delinquencies continued to increase in the last quarter of 2025, said Wilbert van der Klaauw, an economic research advisor at the New York Fed.
Delinquency rates for mortgages are in line with historical levels, with worsening delinquency rates concentrated in lower-income areas and in areas with declining home prices, he added.
Total U.S. household debt increased by 191 billion U.S. dollars from the third quarter, hitting 18.78 trillion dollars at the end of 2025, according to the report.
U.S. household debt delinquency worsened slightly in Q4 2025
Chinese Premier Li Qiang on Wednesday called for a comprehensive push in the technological innovation, industrial growth and application of artificial intelligence (AI) to foster new quality productive forces and promote high-quality development.
Li made the remarks while presiding over a State Council group study session focused on AI development.
China must understand AI development trends accurately, Li said, encouraging breakthroughs across the entire chain, and for broad implementation in diverse scenarios to unlock the potential of the technology in an improved manner.
Li urged efforts to map out forward-looking strategies for new technologies and pathways, push for large-scale and commercial applications, better coordinate key resources ranging from data to computing power and electricity supply, expand international technology exchange, and strengthen AI governance with improvements to laws, policy frameworks, application standards and ethical guidelines.
Additionally, China should build an open and inclusive environment, and cultivate a larger multi-skilled talent pool, Li said.
Zhou Bowen, head of the Shanghai Artificial Intelligence Laboratory, delivered a briefing at the session. Vice premiers Ding Xuexiang and Zhang Guoqing, along with State Councilor Wu Zhenglong, also participated in the discussions.
Chinese premier calls for comprehensive push in AI innovation, application
