Loading ...Americans Are Getting Behind On Their Debts At A Very Frightening Pace
U.S. households are now 18.79 trillion dollars in debt. In 1980, U.S. households were just 1.4 trillion dollars in debt. Over the past several decades we have witnessed a household debt binge that is unlike anything that we have ever witnessed in our entire history. But if consumers could handle that debt load, there wouldn’t be such a high level of concern. Unfortunately, just like we witnessed prior to the financial crisis of 2008 and 2009, Americans are getting behind on their debts at a staggering rate. This isn’t going to end well, but of course many of you know that already.
The latest numbers published by the Federal Reserve Bank of New York show that delinquency rates for auto loans, student loans and credit card debt have all soared to very alarming levels…
https://www.zerohedge.com/markets/americans-are-getting-behind-their-debts-very-frightening-pace
Short answer:
The $18.7–18.8 trillion figure is broadly correct for early 2026. ?
But the claim that delinquency rates have “soared to very alarming levels across the board” is misleading/exaggerated according to the latest Federal Reserve data. ??
Below is a fact?based breakdown from the most recent data.
? 1) Total household debt — mostly TRUE (with context)
U.S. household debt is around $18.8 trillion in Q1 2026. [tradingeconomics.com], [newyorkfed.org]
Some sources report $18.79 trillion—same figure rounded differently. [wallethub.com]
? So that part of the statement is accurate.
However:
In real (inflation-adjusted) terms, debt is not necessarily at an all-time high. [wallethub.com]
Income and assets have also grown, which matters when judging risk. [wolfstreet.com]
?? 2) “Historic debt binge” — partly true, but incomplete
Yes:
Debt has risen enormously since 1980 (the quoted $1.4T figure is commonly cited, though not directly verified in the Fed report sources here).
But:
The number of households and incomes are much higher today.
Debt relative to income has not exploded in the same way and is even lower than in some past periods. [wolfstreet.com]
? So calling it an unprecedented “binge” ignores key context.
? 3) “Delinquency rates have soared across auto, student, and credit cards” — NOT accurate (as stated)
What the latest New York Fed report (Q1 2026) actually says:
Overall delinquency:
About 4.8% of debt is delinquent
“showed little change” in the latest quarter [newyorkfed.org]
Auto loans:
Early delinquency: held steady [newyorkfed.org]
Credit cards:
Early delinquency: ticked down slightly [newyorkfed.org]
Student loans:
Delinquencies are returning to normal (pre?pandemic) levels, after an artificial pause [newyorkfed.org]
? That is very different from “soaring across all categories.”
? 4) What IS true about delinquencies (important nuance)
There are some concerns, but they’re more specific:
Student loans:
Sharp jump earlier when payments restarted after COVID pause [newyorkfed.org]
Some borrowers (lower-income, younger):
Showing stress and rising delinquency [money.usnews.com]
Pre-2026 trend:
Credit card and auto delinquencies increased from pandemic lows, then started stabilizing [federalreserve.gov]
? So the reality is:
Delinquencies rose from unusually low pandemic levels, and are normalizing, not universally “exploding.”
? Bottom line
? TRUE:
Household debt ? $18.8 trillion
Debt has grown a lot over decades
?? MISLEADING / OVERSTATED:
“Soaring delinquencies across all categories”
“Unprecedented crisis-level debt burden”
? More accurate summary:
Debt is high in nominal terms
Delinquency rates are mixed and mostly stable recently
Some pockets of stress exist (especially student loans and lower-income borrowers)
EVERY THING POSTED AT ZERO CREDS IS HYPED TO THE MAX…..THEY ARE BASICALLY FULL OF SHIT…BUT IT’S PROFITABLE AS HELL
BAD NEWS SELLS….PANIC SELLS…..JUST LIKE CLIMATE PANIC AND COVID PANIC ….ECONOMIC PANIC SELLS
I DON’T LIKE HELPING THEM WITH EYEBALLS….BUT AT LEAST COPILOT DEBUNKS THEIR CLAIMS IN 20 SECONDS OR LESS….GOTTA LOVE THIS APPLICATION OF AI….HOPEFULLY READERS ARE CHECKING THE COMMENTS
Context much appreciated Kewl2.
Err FGC rather (to both of you)
Re the $1.4 trillion of 1980, times 20 today in constant value dollars, it would be $28 trillion today. Even if we use times 15 it comes out to $21 trillion.