U.S. Household Debt Hits Record $18.8 Trillion

The Federal Reserve Bank of New York reports that total United States household debt has reached a record $18.8 trillion. This surge in overall debt coincides with a growing disconnect between payment consistency and actual debt reduction among American consumers.

A survey of 1,028 U.S. adults conducted by Centiment on behalf of Lexington Law found that 54% of respondents made no progress in reducing their overall debt over the past year. This occurs despite 56% of those surveyed reporting they have never defaulted on a loan or missed a payment.

Credit cards remain the most common form of debt, held by 43% of households, with approximately three in four households carrying some form of debt. Middle-income households earning between $50,000 and $99,999 report the highest level of growing credit concern at 31%. Among the 45% of respondents who have missed a payment, 44% experienced a subsequent drop in their credit score.