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
