- Household spending is a significant driver of the U.S. economy, as it makes up approximately two thirds of U.S. GDP. Household debt delinquency rates are a key indicator in assessing the financial health of those households.
- Data from the New York Federal Reserve Bank reports that the outstanding balance of 90+ day delinquencies of household debt increased substantially starting in 2025.
- The elevated levels of delinquencies are due to increases across categories of household debt, however the resumption of student loan payments, and a jump in delinquent credit card balances are major contributors.
- If the stress on household balance sheets is not remedied by higher incomes or lower prices, many families may be compelled to cut back on spending, creating potential headwinds for segments of the U.S. economy over time.
