US Household Debt Reaches $19.1 Trillion as Credit Card and HELOC Balances Surge

Aggregate United States household indebtedness expanded by $334 billion during the third quarter to reach a record $19.1 trillion, according to data published by the Federal Reserve Bank of New York. The advance was characterized by a sharp rise in revolving consumer obligations, with credit card balances expanding by $22 billion over the quarter to reach a historic peak of $1.29 trillion, representing a 4.2% increase compared to the corresponding period a year earlier.

Concurrently, homeowners tapped real estate equity at the quickest rate seen in over two decades. Balances on home equity lines of credit expanded by $23 billion in the three months ending September 30, marking the largest single-quarter increase since 2005 and bringing total outstanding HELOC balances to $481 billion. Borrowers increasingly turned to equity lines while avoiding existing mortgage refinancings, as nearly half of outstanding residential home loans remain locked below 4% interest rates.