US Debt Hits Record High: Is This a Sign of an Impending Financial Crisis?

US household debt continues to rise, reaching $18.04 trillion or approximately Rp 293.456 trillion in Q4 2024. This is the largest household debt since the 2007-2009 financial crisis. The increase in debt is driven by rising credit in all sectors, including home loans, auto loans, and student loans.

Many Americans are struggling to pay off their debts, particularly for auto loans and credit cards. A significant number have delinquencies of over 90 days, which is the highest point in 14 years. However, the overall delinquency rate remains relatively low, below 3.6%.

Additionally, credit card usage is on the rise, indicating that the US economy is starting to recover. Deutsche Bank senior economist Brett Ryan notes that most Americans are financially stable, but could face difficulties if they experience job loss or other financial shocks.