Consumer Debt Hits Record $16.5 Trillion in 2023 with Fastest Growth Since 2007

In 2023, household debt experienced its most rapid growth since 2007, fueled primarily by soaring mortgage balances and a significant rise in credit card usage.

The total consumer debt increased by an unprecedented $351 billion in the third quarter alone, pushing the aggregate household debt to a record-breaking $16.5 trillion. This figure represents a 2.2% rise from the previous quarter and an 8.3% increase compared to the previous year.

Mortgage debt was the largest contributor, climbing by $1 trillion over the past year to reach $11.7 trillion, reflecting ongoing housing market pressures.

Credit card debt also saw a remarkable surge, reaching $930 billion. This marks a more than 15% annual increase—the steepest rise in over two decades. Officials from the New York Federal Reserve highlighted that this growth in credit card balances "far exceeds the trends observed over the past eighteen years." They attributed this spike to strong consumer spending, inflationary pressures, and the depletion of savings as households turn to credit to finance their consumption.

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