Consumers added to debt loads in September

November 10, 2025

Consumers took on more debt in the third quarter. The amount of consumer credit outstanding increased 3.1% at a seasonally adjusted annual rate in September, up from a 0.7% increase in August. On a year-over-year basis, consumer credit outstanding inched higher, up 0.4%, a similar pace to the last six months. For September alone, revolving debt, made up primarily of credit cards, grew 1.5%.

Nonrevolving debt, which includes car loans, student loans and personal loans, increased at an annual rate of 3.7% in September after the August rate was revised up to 2.9% from 2%. Nonrevolving debt gained 2.9% for the third quarter, the same as the second quarter.

Even as autos have become more expensive and even out of reach for most consumers, student debt is compounding. This week's household debt and credit report by the New York Federal Reserve Bank found that transitions into serious delinquency (90+ days of non-payment) in student loans surged to 14.3% in the third quarter. That is the fastest rate since the data were first collected in 2000.

Note: The data on consumer credit is not adjusted for inflation. Real consumer credit outstanding was flat in September after falling by 0.3% in August.