The Federal Reserve Bank of New York has released alarming new data indicating that U.S. households are grappling with unprecedented levels of debt, now totaling a staggering $18.39 trillion at the end of Q2 2025. Even more telling is WalletHub’s analysis, which reveals that while this figure is the highest in absolute terms, inflation-adjusted debt is still approximately $1.05 trillion below the peak seen in 2008.
Recent survey results from WalletHub highlight the growing unease among American households regarding their financial situations. Key findings from the survey reveal troubling trends:
- Debt Increase Anticipated: A striking 44% of respondents expect their household debt to rise in the next 12 months.
- Common Struggle: Over half of Americans report that their households are currently struggling with debt, indicating a widespread financial strain.
- Domestic Tensions: Nearly 40% of individuals indicated that debt is a source of conflict within their homes, further underscoring the emotional toll of financial burdens.
- Perceptions of Fairness: 44% of Americans believe that the preferential treatment provided to student loan borrowers over the past five years has been unfair.
- Economic Discontent: More than two-thirds of respondents feel that the economy is not performing as well as they had anticipated.
- Debt Lifespan: A concerning 55% of individuals fear they will still carry debt at the time of their passing.
Reflecting on these findings, WalletHub editor John Kiernan remarked, “Many Americans are literally sick and tired of dealing with debt. The prolonged stress and anxiety that come with substantial financial obligations can significantly impact one’s physical and emotional well-being.”
Kiernan continued, “Although times are tough, too many have accepted a debt-ridden future. More than 40% of Americans expect their household debt to increase in the coming year, and over half believe they will still have debt when they die. While overcoming debt may not happen overnight, taking small, consistent steps can lead to financial freedom. Utilizing tools such as budgeting apps can help individuals monitor their expenses and make sustainable spending choices.”
The data indicate a need for increased financial literacy and support as Americans navigate these challenging economic waters. As discussions about debt continue, many households may seek innovative solutions to restore their financial stability and peace of mind.
