#United States #Atlanta #Equifax #U.S. Economy #Consumer Debt

U.S. Consumer Debt Surpasses $18 Trillion

In a recent report by Equifax, the staggering figure of U.S. consumer debt has soared past $18 trillion. This significant milestone reflects both rising economic activity and the stresses that many American households are enduring. The data provides crucial insights into the trends and behaviors of consumers, particularly regarding their credit and debt management.

Current Debt Landscape

As of September 2025, total U.S. consumer debt reached $18.03 trillion, showing an increase from $17.91 trillion in August and $17.94 trillion in July. Notably, delinquency rates—which indicate the percentage of debt that is overdue—have slightly risen to 1.562% from 1.517% at the end of the second quarter. This stabilization may suggest that consumers are beginning to manage their obligations amidst economic uncertainties.

Equifax's Market Pulse report identifies key categories, such as auto loans and student loans, which significantly contribute to the overall debt landscape.

Auto Loans: A Double-Edged Sword

In the auto lending sector, delinquency rates for newer loans, categorized as those taken out in the last two years, have shown pronounced increases among near-prime and prime borrowers. Tom O'Neill, a Market Pulse Advisor at Equifax, notes these trends reveal that economic pressures are reaching consumers across varying credit tiers. Traditionally, households prioritize mortgage and auto payments in their budgets. However, the evolving scenario, especially with regard to student loan wage garnishments, may cause shifts in consumer payment hierarchies.

Shifts in Lending Behaviors

The rise in auto loan debt, which increased by 1.4% year-over-year to $1.68 trillion as of September, is a notable trend. This includes a significant 11.5% rise in lease balances, indicating a shift in consumer preferences as rising vehicle costs prompt many to consider leasing as a more affordable option. This behavioral change mirrors broader economic conditions, where maintaining car ownership has become increasingly burdensome due to rising prices and elevated interest rates.

Along with auto loans, bankcard usage has expanded, with balances climbing to $1.08 trillion—a 4% increase compared to September 2024. However, private label credit cards are seeing a decline, suggesting that newer generations are opting for more flexible, general-purpose credit options instead.

Student Loan Landscape Stabilizes

Student loan delinquencies are leveling off after reaching high levels in previous years. The severe delinquency rate (loans that are over 90 days past due) has moved to 16.32%, significantly up from just 0.79% a year ago. As borrowers express varying levels of engagement with their obligations, the total outstanding student loan debt has remained slightly below previous years, indicating that repayment priorities might shift as wage garnishments resume.

Future Implications

The implications of this data are multifaceted. With the holiday season approaching, consumers face increasing financial pressures as spending rises. The overall stabilization of delinquency rates across various loan types will be critical to monitor, as this will determine how lenders adjust their practices in response to shifting consumer behaviors.

Equifax continues to track these trends, providing valuable insights into the consumer credit landscape. Their reports reflect the complexities of American debt management, urging consumers to be cautious while navigating their financial obligations in an era of volatility. By understanding these trends, stakeholders, including lenders and policymakers, can better support consumers facing unprecedented economic challenges.

In conclusion, the current U.S. consumer debt landscape paints a picture of both growth and caution. As Americans adapt to their financial realities, keeping an eye on how they manage their debts will be essential not only for their economic well-being but also for the overall health of the U.S. economy.