US consumer debt continued its upward climb through the end of 2025, with growth gaining momentum in the final months of the year, according to Equifax’s (NYSE: EFX) National Market Pulse report released February 24, 2026. The credit analytics firm’s proprietary data shows total consumer debt balances reached $18.20 trillion by December, up 3.7% from a year earlier—the sharpest monthly acceleration compared to the same periods in 2023 and 2024.
This figure aligns with broader measures from the Federal Reserve Bank of New York, which reported household debt hitting roughly $18.8 trillion in the fourth quarter, confirming that US consumer borrowing has surged to record territory amid sustained spending despite high interest rates and lingering inflation.
The Equifax data breaks down the composition of this debt load in revealing ways.
First-mortgage balances stood at approximately $12.82 trillion, while home equity lines of credit (HELOCs) grew by 12.6% year-over-year to $421.7 billion.
Bankcard (general-purpose credit card) balances rose 4.1% to $1.12 trillion, though average utilization dipped slightly to 21.2%—not because consumers cut back, but due to credit limits expanding by about 6.5%.
Private-label retail cards, by contrast, contracted sharply, with balances falling 11.2% and accounts dropping 21.4% as shoppers shifted toward more flexible options.
Auto loans and leases totaled $1.685 trillion, a modest 1% increase, reflecting consumers stretching terms and leaning into leasing to manage elevated vehicle prices.
Student loan balances edged down 1.4% to $1.33 trillion.
Delinquency trends offered a mixed signal of cautious improvement.
As of December, 5.7% of consumers had at least one account 60 or more days past due, down from a third-quarter peak of 6.8%.
Bankcard serious delinquencies improved to 3.03% from 3.16% a year prior. Still, these levels sit noticeably above pre-pandemic norms, pointing to persistent underlying stress even as seasonal tailwinds—such as incoming tax refunds—may provide near-term breathing room.
Equifax Market Pulse Advisor Maria Urtubey emphasized the uneven nature of the recovery.
“Topline improvements can mask financial stress in certain groups,” she said, highlighting a persistent “K-shaped” divide.
Higher-income consumers are benefiting from asset gains and easier credit access, but many others, particularly subprime borrowers with credit card utilization holding flat at 75.6%, remain squeezed by rising costs and elevated borrowing rates.
Renewed student loan enforcement could further disrupt traditional payment priorities, traditionally favoring housing and auto obligations.
For overall financial wellbeing, these trends carry notable risks.
Record debt levels support consumer spending that drives much of the economy, yet they also constrain household flexibility.
Lower- and middle-income families, already navigating inflation’s lingering effects and slower job gains, face heightened vulnerability to shocks—potentially delaying major life goals, eroding savings, or forcing tough trade-offs between essentials and debt service.
While aggregate health has held relatively steady, the data underscores a widening gap: prosperity for some, mounting pressure for others.
In summary, Equifax’s Q4 2025 snapshot paints a picture of resilient yet fragile consumer finances.
As debt growth accelerates, Americans would be wise to prioritize budgeting, explore debt-management strategies, and build buffers against uncertainty. With economic headwinds like tariffs and moderating employment on the horizon, proactive financial habits could determine whether this borrowing boom sustains wellbeing or sows seeds of instability.
