US household debt has reached a record high of over $18.8 trillion.
What happened
Despite low unemployment and a strong stock market, many Americans are struggling financially, with high levels of debt and increasing costs of living. The total debt currently held by US households is more than $18.8 trillion, with credit card debt reaching an all-time high of around $1.28 trillion in the last quarter of 2025. The average student debt for women in the US now exceeds $30,000, with more than 60% of student loan debt belonging to women.
The Household Debt Service Ratio, which measures total household debt payments as a percentage of after-tax personal income, is currently around 11%, down from a peak of 16% in 2008. However, this ratio does not account for rent payments or some forms of student loan debt.
The increasing debt levels are attributed to various factors, including the ease of obtaining credit, the rising cost of living, and the growing burden of student loan debt. The popularity of videos featuring car repos and debt counseling has also highlighted the issue of financial struggles in the US.
