Third Quarter 2025 Consumer Credit Trends Indicate Moderate Debt Growth for Auto and Student Loans
ATLANTA, Nov. 5, 2025 /PRNewswire/ -- Equifax® (NYSE: EFX) has released its Market Pulse Third Quarter U.S. Consumer Credit Trends, which includes U.S. national consumer credit data and trends through September 2025 sourced from Equifax data. According to Equifax, delinquency on total U.S. consumer debt inched up to 1.562% in September, a slight increase from 1.517% at end of the second quarter in June 2025. Total consumer debt reached $18.03 trillion in September, up from $17.91 trillion in August and $17.94 trillion in July.
"Specifically within auto loans, we are seeing a more pronounced rise in delinquency rates for newer auto loans, defined as loans taken in the last 24 months, within the near-prime and prime populations," said Tom O'Neill, Market Pulse Advisor at Equifax. "This indicates that some economic stresses that some consumers are facing aren't confined to the lower credit tiers. Should these pressures continue, the impact on lenders may fall outside of traditional consumer payment hierarchies. Historically, households prioritize mortgages and auto loans, but stress caused by developments in other credit categories, like student loan wage garnishment, may disrupt that predictability."
During the pandemic period, severe delinquency rates fell to historically low levels, with rates as low as 1.0%, and 1.3% for auto loans and bankcards more than 60 days past due. From those levels, delinquency rates rose and both of those lending products saw delinquency rates level off at slightly higher than pre-pandemic levels by 2023 and hitting peaks in early 2024 of 1.6% for auto and 3.2% for bankcards. Despite remaining above pre-pandemic levels, delinquencies have stabilized, with bankcard delinquencies even slightly decreasing to 2.7%.
Key Insights
- Auto Credit: Leases Soar, Loans Show Weakness
Auto loan and lease debt totaled $1.68 trillion in September, up 1.4% over September 2024. Lease balances grew 11.5% compared to September 2024 to $95.8 billion in September 2025, and delinquencies were slightly down year-over-year to 0.46% in the same timeframe. Meanwhile, loan balances increased only 0.8% to $1.587 trillion from September 2024 to September 2025 and delinquencies edged up to 1.64% in the same time period. Rising prices for new and used vehicles, hefty insurance premiums, and elevated interest rates have increased the costs of car ownership and contributed to shifting behaviors among consumers.
"The auto sector is often an indicator for consumer stress, as auto loans typically sit near the top of household payment priorities," said O'Neill. "Faced with the high costs of car ownership, many consumers seem to be turning to alternatives. As a result, we're seeing steady growth in leasing, and some borrowers are stretching out loan terms to manage affordability."
- Bankcards Grow While Private Label Credit Cards Decline
Bankcard balances reached $1.08 trillion in September 2025, up 4.0% from September 2024, and accounts rose to 586.2 million, up 6.3% year-over-year. The delinquency rate of more than 60 days past due rose slightly from August to September 2025 to 2.83%, but is down from 3.01% from September 2024 to 2025.
Heading into the holiday season, private label card balances and accounts are down dramatically in September, with an 11.7% decrease in balances and 25.5% decrease in accounts year-over-year as consumers appear to look to the flexibility of general-purpose alternatives. Younger generations are also foregoing opening private label credit cards as their first credit product, favoring alternatives like co-branded cards or Buy Now, Pay Later options.
- Student Loan Delinquency Levels Off
Student loan delinquencies began leveling off around 18% and are showing signs of stabilization. The severe delinquency rate - non-deferred loans more than 90 days past due or in bankruptcy - was 16.32% in September, up sharply from 0.79% a year ago before reporting delinquencies on unpaid student loans resumed. Outstanding student loan debt rose slightly to $1.34 trillion in September 2025, but was 4.8% lower compared to September 2024. Accounts grew to 147.4 million in September, down 8.6% from 161.1 million a year ago.
Historically, student loan debt has been a lower priority for consumers than mortgage and auto obligations. However, the prioritization of student loan repayment could become a higher priority for consumers when wage garnishment on delinquent loans resumes.
Month-Over-Month Results
Total Consumer Debt
Month | Total Consumer Debt ($T) | MoM Change (%) | YoY Change (%) |
July 2025 | 17.94 | 0.4 | 2.5 |
August 2025 | 17.91 | -0.2 | 2.1 |
September 2025 | 18.03 | 0.7 | 2.7 |
Mortgage Debt (including Home Equity Loans)
Month | Mortgage Debt ($T) | MoM Change (%) | YoY Change (%) |
July 2025 | 13.27 | 0.5 | 4.0 |
August 2025 | 13.24 | -0.2 | 3.4 |
September 2025 | 13.33 | 0.7 | 3.7 |
Non-Mortgage Debt (Auto Loans, Bankcard and Private Label Credit Card, Student Loans and Personal Loans)
Month | Non-Mortgage Debt ($T) | MoM Change (%) | YoY Change (%) |
July 2025 | 4.67 | 0.3 | -1.6 |
August 2025 | 4.68 | 0.2 | -1.2 |
September 2025 | 4.70 | 0.4 | 0.2 |
Equifax has been tracking U.S. National Consumer Credit Trends for more than 20 years. Monthly reports can be found on Equifax.com. These reports track originations, balances and delinquencies on U.S. consumer mortgages, auto loans and leases, student loans, bankcards and private label credit cards, and personal loans. To explore Equifax tools that deliver U.S. National Consumer Credit Trends data and key market metrics click here.
ABOUT EQUIFAX INC.
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FOR MORE INFORMATION:
Tiffany Smith for Equifax
mediainquiries@equifax.com
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SOURCE Equifax Inc.
