The “$152K” Trap—What They’re Not Telling Us

Record-high household debt headlines mask key nuances—and expose how years of inflated prices, high rates, and policy misfires still squeeze families despite improving delinquencies.

Story Snapshot

Total household debt hit about $18.4 trillion in Q2 2025, led by mortgages.
The oft-cited “$152K average household debt” is not an official federal statistic.
Delinquency stress is concentrated in nonprime auto and credit card borrowers.
HELOC balances have climbed for 13 straight quarters as owners tap home equity.

What the $152K headline really means

News aggregators tout an “average household debt” near $152,000, but federal data do not publish a single standardized household figure. Official sources report aggregates and per-borrower averages, not a definitive household number. The New York Fed puts total household balances near $18.39 trillion in Q2 2025, while USAFacts reports roughly $62,500 in average total debt per person with a credit file as of Q1 2025. Converting those into a household headline requires assumptions, so treat any exact “average household” figure cautiously.

Mortgage liabilities dominate the picture. Mortgages account for roughly $12.94 trillion of that $18.39 trillion total, with nonmortgage categories—credit cards, auto loans, student loans, and other consumer credit—making up the balance. Credit card balances reached about $1.21 trillion, auto loans about $1.66 trillion, and home equity lines of credit (HELOCs) rose to approximately $411 billion after thirteen consecutive quarterly increases since early 2022. These category shifts reflect higher home values, elevated rates, and cost pressures spilling into revolving credit.

Where the real stress is showing up

Federal Reserve assessments describe overall household-debt vulnerabilities as moderate, but the strain is not evenly shared. Nonprime and subprime borrowers show elevated delinquencies in autos and credit cards compared with pre‑pandemic norms. Credit card delinquency rates peaked in late 2024 at the highest levels since 2010, then edged down in early 2025—an improvement that still leaves lower-credit borrowers more exposed to shocks. Lenders face higher charge-offs in these segments, and consumers face tougher credit access and higher pricing.

Historical context matters for perspective. During the Great Recession, card delinquencies neared 7% and remained above 5% for almost two years—far worse than current readings near roughly 3% at least 30-days delinquent in Q1 2025. Today’s backdrop differs: inflation has cooled from peaks but left a higher price level; interest rates remain elevated compared with the 2010s; and loan terms, especially in autos, have lengthened, raising negative-equity risks. Those conditions amplify pressure on families least able to absorb it.

HELOCs, rate lock-in, and the squeeze on mobility

Homeowners increasingly tap HELOCs because refinancing into higher first-mortgage rates makes little sense. Thirteen straight quarters of HELOC growth since Q1 2022 point to households using home equity as a safety valve for renovation, consolidation, or cash-flow needs. Meanwhile, “rate lock-in” suppresses home sales and mobility, keeping mortgage balances large and turnover low. That dynamic, coupled with high insurance, taxes, and maintenance, keeps the cost of shelter elevated even as headline inflation cools.

What it means for policy and families now. Elevated balances and higher servicing costs trim discretionary spending, particularly for nonprime cohorts that feel inflation and borrowing costs most acutely. The Fed’s view of “moderate” systemwide vulnerability depends on a steady labor market; job losses would quickly widen delinquencies. For households, the prudent focus is deleveraging high-rate revolving balances, avoiding extended-term auto loans with steep depreciation risk, and using equity carefully rather than as a crutch.