President Donald Trump returned to Washington promising relief for everyday Americans, but new numbers suggest the pressure on family budgets is still mounting. A recent report from the Federal Reserve Bank of New York shows that household debt in the United States rose by roughly $197 billion in the third quarter alone, pushing total borrowing to about $18.59 trillion, a jump of more than $4 trillion since the start of the pandemic.
It’s not just one kind of debt either; mortgages increased, student loan balances grew to about $1.65 trillion, and auto and credit card borrowing picked up as well. The report points out that some of the rising delinquency rates are due to previously unreported missed student loan payments finally showing up on credit reports. As the Fed explains, “Missed federal student loan payments are now appearing in credit reports.”
Meanwhile, analysts are sounding alarms on the rising debt. Ted Rossman, senior industry analyst at Bankrate, touched on the uneven pattern in the debt data: “Student loan delinquencies are at a record high, but auto loan and credit card delinquencies aren’t as high as they were in the middle of 2024.” His assessment reflects the strange duality of the American economy, where consumer spending remains steady on the surface even as millions of families quietly struggle to keep up with rising monthly payments.
On one hand, many households still have equity, rising home values, and the ability to borrow cheaply in recent years. On the other hand, for younger borrowers and those who deferred payments during the pandemic, the resumption of those obligations is coming with a harsh reality check. The Fed’s researchers noted that while the overall consumer balance sheet “looks pretty good,” trouble is emerging among first-time borrowers and younger workers, groups that make up a key part of the American middle class.
Politically, this is bad optics for the Trump administration, which touts economic prosperity. The campaign and early rhetoric promised faster relief in household finances, but here are the numbers: household debt is at a record high, student loan stress is rising, and the debt mountain keeps growing. The Fed stops short of blaming government policy, but the optics are hard to ignore. Rising costs for housing, groceries, and education are squeezing the same voters who were promised a return to prosperity.
Housing costs aren’t easing much, so mortgages remain large and monthly payments high. At the same time, the pause on student loan payments ended, and suddenly old misses are showing up, tightening budgets. Both factors make for a heavier load than many families expected. Add higher credit card rates to that mix, and the typical household is juggling more than at any time in recent memory.
All of this suggests that while headline numbers on growth and employment might look reassuring, there is financial strain beneath the surface. Wealthier households are mostly holding steady, but for younger or lower-income borrowers, the burden is growing. If job growth slows or interest rates rise again, this pressure could spread further, testing the promise that Trump’s America would be a place where everyday people finally got ahead.
