Key Findings from the Study
- Seniors 70+ are now the fastest-growing group of borrowers, with debt rising 4.22% YoY and 36.2% over 5 years.
- Young adults 18–29 were the only age group to reduce debt in Q1 2025.
- Student loan delinquency spiked to 8.19%, up from 0.87% the previous quarter–an 841% increase.
- Auto loan debt jumped 17.92% among 30–39-year-olds, the highest of any age group.
- 18–29-year-olds reported the highest serious delinquency rate (3.35%) of any generation.
Household debt has become an increasingly urgent financial issue in the United States, especially as different age groups experience vastly different borrowing behaviors and repayment risks.
An exclusive new study from The Kaplan Group reveals that seniors over age 70 have increased their total debt by 36.2% over the past five years, making them the fastest-growing group of borrowers. At the same time, student loan delinquency among borrowers under 30 surged from 0.87% in Q4 2024 to 8.19% in Q1 2025.
The study analyzed Q1 2025 data from the Federal Reserve Bank of New York, covering over 100 million U.S. households. The report includes quarterly and five-year trends across mortgages, credit cards, auto loans, and student loans, with detailed breakdowns by age group.
Seniors need to make sure their borrowing supports—not jeopardizes—their retirement goals. And young adults must focus on managing existing obligations before taking on new ones. Financial stress isn’t about how much you owe—it’s about whether you have a plan to repay it.
How Has Household Debt Shifted in 2025?
In Q1 2025, total U.S. household debt increased by 0.93%. Secured loans such as mortgages and home equity credit lines were the primary drivers of this growth, rising 1.58% and 1.52%, respectively. Meanwhile, unsecured credit card debt declined by 2.39%, suggesting a pullback from high-interest borrowing.
Student loans rose modestly by 0.99% quarter-over-quarter. However, the delinquency rate on student loans surged from 0.87% in Q4 2024 to 8.19% in Q1 2025, indicating growing repayment pressure.
Borrowers are prioritizing stability, which is why we’re seeing a shift to secured lending. But even responsible debt comes with risk if income or savings can’t keep pace.
| Debt Type | Quarterly Change |
| Total Household Debt | +0.93% |
| Mortgage Debt | +1.58% |
| Home Equity Lending | +1.52% |
| Credit Card Balances | -2.39% |
| Auto Loans | -0.79% |
| Student Loans | +0.99% |
| Student Loan Delinquency | +841% |
Debt by Age Group: Who Owes the Most?
Debt levels and borrowing patterns in Q1 2025 varied significantly by age group. Americans aged 40–49 held the highest total debt balances at $4.76 trillion. Meanwhile, seniors aged 70+ saw the largest percentage growth in debt, increasing 4.22% year-over-year and 36.2% over the past five years.
In contrast, 18–29-year-olds were the only age group to reduce their total debt year-over-year. Despite borrowing less, this youngest cohort reported the highest serious delinquency rate at 3.35%.
- 40–49-year-olds hold the most total debt.
- Seniors 70+ are the fastest-growing debt holders.
- Young adults 18–29 are borrowing less but missing payments more.
| Age Group | Debt ($T) | 5-Year Growth | YoY Growth | 90+ Day Delinquency |
| 18–29 | $1.05T | +16.7% | -0.94% | 3.35% |
| 30–39 | $3.89T | +32.8% | +2.64% | 2.97% |
| 40–49 | $4.76T | +33.0% | +3.48% | 2.41% |
| 50–59 | $4.02T | +19.3% | +2.81% | 2.47% |
| 60–69 | $2.73T | +21.9% | +3.02% | 1.72% |
| 70+ | $1.73T | +36.2% | +4.22% | 1.69% |
Who’s Borrowing More for Homes and Cars in 2025?
Mortgages and auto loans—two of the largest categories of household debt—showed generational differences in both growth and long-term change.
Mortgage balances declined over the last five years across all age groups, with the sharpest reduction among those aged 70 and older (-49.3%). Despite this, some groups such as 18–39-year-olds showed strong year-over-year growth in mortgage balances, likely reflecting recent home purchases or refinancing.
Auto loans increased most sharply among 30–39-year-olds (+17.92% YoY) and those over 70 (+14.15% YoY), suggesting increased vehicle purchases or refinancing activity.
These trends reflect lifestyle shifts. Younger borrowers are trying to build, while older ones are consolidating or downsizing. Either way, timing and loan terms make a major difference.
Mortgage Debt (5-Year Change)
| Age Group | 5Y Change | YoY Change |
| 18–29 | -11.8% | +12.8% |
| 30–39 | -27.5% | +11.0% |
| 40–49 | -40.5% | -0.4% |
| 50–59 | -42.4% | +7.48% |
| 60–69 | -37.6% | +1.4% |
| 70+ | -49.3% | -2.4% |
Despite recent upticks, all age groups have cut mortgage debt over 5 years—especially those 50+, who may be downsizing or retiring.
Auto Loans (5-Year Change)
| Age Group | 5Y Change | YoY Change |
| 18–29 | +6.48% | +10.58% |
| 30–39 | +2.84% | +17.92% |
| 40–49 | -2.16% | +6.14% |
| 50–59 | -3.72% | -0.32% |
| 60–69 | +0.88% | +3.64% |
| 70+ | -0.82% | +14.15% |
Auto borrowing is surging again among younger adults and seniors, while middle-aged consumers are holding steady or paying down car loans.
Delinquency Rates: Who’s Falling Behind?
Delinquency rates show which generations are struggling to stay current on their debt obligations.
In Q1 2025, 18–29-year-olds had the highest serious delinquency rate at 3.35%. This was nearly double the rate of those aged 70 and older (1.69%), who maintained the lowest delinquency levels.
Other age groups fell between these extremes: the 30–39 cohort reported a 2.97% delinquency rate, while 40–59-year-olds ranged from 2.41% to 2.47%.
Late payments often signal a deeper budgeting issue. Addressing this early—before missed payments snowball—is the best financial move anyone can make.
Delinquency Rate By Age Group
- 18–29: 3.35% (highest of all groups)
- 30–39: 2.97%
- 40–49: 2.41%
- 50–59: 2.47%
- 60–69: 1.72%
- 70+: 1.69% (lowest)
Although young adults are borrowing less, they are the most financially stressed group by delinquency rate.
Conclusion: A Crossroads for Borrowers
The Q1 2025 data paints a clear picture: older Americans are driving debt growth—a reversal of historical norms—while younger adults are pulling back but struggling to stay current on payments.
This shift toward secured lending and generational financial risk requires:
- Rethinking retirement planning
- New financial literacy outreach for young adults
- Policy updates to address rising student loan stress
Seniors should revisit their long-term budgets before taking on new debt, especially fixed-income retirees facing rising costs. Younger borrowers should prioritize building an emergency fund and automating loan payments to avoid delinquency.
Methodology
This analysis draws exclusively from the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit for Q1 2025. The report provides comprehensive data on household debt, including:
Data Sources:
- Quarterly household debt data from 2003 through Q1 2025
- Age-based debt distribution and delinquency rates
- State-level household debt statistics
- Debt composition by type (mortgage, auto, credit card, student loans)
Analysis Framework:
- Generational comparisons using six age cohorts (18-29, 30-39, 40-49, 50-59, 60-69, 70+)
- Multiple time horizons:
- Quarter-over-quarter changes
- Year-over-year growth
- Five-year trends (2020-2025)
- Long-term patterns since 2003
Metrics Used:
- Total debt levels (in trillion dollars)
- Growth rates (quarterly, yearly, and 5-year periods)
- Delinquency rates (90+ days past due)
- Debt composition percentages
- State-level variations
All dollar amounts are nominal and not adjusted for inflation. Percentages are calculated using consistent base periods to ensure comparability across different debt types and age groups.
