U.S. Consumer Debt Hits $18.2 Trillion as K-Shaped Recovery Deepens
Event summary
- Total U.S. consumer debt reached $18.20 trillion in December 2025, up 3.7% year-over-year.
- Delinquency rates eased to 5.7% of consumers with at least one payment 60+ days past due, down from a peak of 6.8% in Q3 2025.
- Bankcard balances grew 4.1% year-over-year to $1.12 trillion, while private label credit card balances fell 11.2%.
- Auto loan and lease balances reached $1.685 trillion, with leasing activity up 7.6% year-over-year.
- Student loan delinquencies stabilized at 16.39%, but renewed wage garnishment may reshape repayment priorities.
The big picture
Equifax's data highlights a persistent K-shaped economic divide, with higher-income consumers benefiting from expanded credit availability while many others struggle. The acceleration in consumer debt growth, coupled with elevated delinquency rates relative to pre-pandemic norms, underscores the uneven financial health of American consumers. The shift towards general-purpose credit products and the resilience of auto credit reflect broader trends in consumer behavior amid high vehicle prices and economic pressures.
What we're watching
- Economic Divide
- Whether the K-shaped economic divide will widen further as higher-income consumers benefit from asset inflation while lower-income groups face financial stress.
- Delinquency Trends
- How seasonal patterns, such as tax refunds, will influence near-term credit performance and delinquency rates.
- Repayment Priorities
- The impact of renewed wage garnishment on student loan repayment behavior and its potential to reshape payment hierarchies among consumers.
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