Read our full analysis for a more in-depth look at these trends.
Where is debt growing?
Total household debt is increasing, with mortgages and student loans in focus.
August 2025
Key takeaways
- Household debt rose again in the second quarter of 2025. Still, the ratio of household debt payments relative to disposable personal income remains below the historical average. This suggests to us there is further room for consumers to increase borrowing, so long as the labor market holds up.
- Average mortgage balances were up more than 32% in June from the 2019 average, according to third-party data which may include Bank of America loans. With mortgage costs at an all-time high, some borrowers are having difficulty keeping up with their payments, especially in western states where early-stage delinquencies saw the greatest annual rise.
- Notably, in the first half of 2025, new student loan delinquencies have jumped above the 2019 average, mainly among borrowers aged 50+, following the end of the education debt payment pause. Though this is a small subset of the overall student loan holder population, this group's spending momentum could slow.
Additional Materials:
Get the latest from Bank of America
Institute delivered right to your inbox.
