🚨US consumer financial stress reached critical level

US consumer, the major driver of the economy is pulling back on spending, as if there is a recession

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Global Markets Investor
August 11, 2025

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US household debt rose $185 billion in Q2 2025, to a record $18.39 trillion.

Year-over-year, household debt has risen $592 billion.

The Q2 increase was driven by mortgage debt, which surged $131 billion to a record $12.94 trillion.

Credit card debt rose $27 billion, to $1.21 trillion, just shy of an all-time high.

Student and auto loans soared $7 billion and $13 billion, to $1.64 trillion and $1.66 trillion, respectively, both hitting records.

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US consumers have never been more indebted:

globalmarketsinvestor.beehiiv.com/p/us-consumers-have-never-been-more-indebted

Household debt is just a small piece of the US consumer story. The ability to pay out this debt as well as spending power, are more important.

The following analysis examines these aspects as well as the overall financial distress of US consumers using the latest data. It serves as an update to the article linked below.

Financial distress is rising among US households

US consumer spending is near a tipping point

globalmarketsinvestor.beehiiv.com/p/financial-distress-is-rising-among-us-households

⚠️The US labor market suggests the economy is in a recession

Massive downward job revisions continue, and it is not over yet

globalmarketsinvestor.beehiiv.com/p/the-us-labor-market-suggests-the-economy-is-in-a-recession

AMERICANS ARE FALLING BEHIND ON THEIR DEBT AS RARELY BEFORE

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