US household debt reaches record $18.8 trillion

United States household debt has reached a record $18.8 trillion, according to the Federal Reserve Bank of New York. While a Lexington Law survey of 1,028 adults indicates that 56% of Americans have never missed a payment or defaulted on a loan, many are struggling to reduce their total balances.

Data shows that 54% of respondents have not made progress on their overall debt in the past year. Among those surveyed, 43% carry credit card debt, 27% have mortgages, 22% have auto loans, and 19% have personal loans. Additionally, 41% of respondents owe at least $10,000 outside of a mortgage.

Financial pressures are further compounded by specific loan types. Research provided by the Urban Institute shows that over 74 million adults carry auto debt, with average monthly payments reaching a record $716. Furthermore, more than 36 million adults hold student loan debt, averaging $316 per month. For the 6% of individuals carrying both types of debt, monthly obligations can exceed $1,000, significantly impacting their ability to save for retirement or manage housing costs.