By Arlenys Tabare
In light of the latest reports from the New York Federal Reserve on U.S. household debt data, a new analysis from WalletHub released the results of a survey on how households rate their debt management.
The FED report noted that during the first quarter of this year, American household debt reached $18.8 trillion; However, data from WalletHub indicates that, compared to 2025, Total household debt decreased by $339 billion between January and March of this year.
In this regard, John Kiernan, editor of WalletHub, commented that “taking into account the neatly-liked crisis of affordability and, in particular, high gasoline prices, Some may be surprised to learn that household debt, adjusted for inflation, decreased during the first quarter of the year. “Consumers even paid off 351% more debt than during the first quarter of 2025.”
Howeverthe survey revealed that 56% of Americans say recent increases in energy costs are leading to more debt, In addition, 2 out of 5 respondents affirm that their equity debt will continue to increase in the next 12 months.
For their part, 40% of those surveyed indicated that family debts are directly affecting their health, indicating that it is currently difficult for them to stay afloat. While 67% believe that good budget planning could solve the problem; However, 1 in 5 say they will not be willing to sacrifice their discretionary spending to get out of debt.
According to data from the New York Fed, the majority of debt accumulated in American households comes from mortgages and auto loans, student loans and credit cards.
“It is important to remember that the war in Iran did not begin until the end of this quarter, and some early indicators point to these being difficult times. The best way to prepare for potential economic turmoil is to budget, save, and pay off as much debt as possible now”Kiernan highlights.
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