NJ families feel the squeeze as household debt nears crisis levels

The latest numbers from the WalletHub Household Debt Report put something into focus that many families already feel in their day to day lives. Total U.S. household debt reached about $18.78 trillion in 2025. That is up roughly $257 billion from 2024 and not far from the peak we saw before the 2008 financial crisis. On paper, it is a national statistic. In real life, it feels personal.

Despite what some might say about the broader economy, my own experience and the conversations I have had with friends and listeners tell a consistent story. When asked whether their household is better off financially than a year ago, before COVID, or a decade ago, most answer no. There are exceptions. There are always exceptions. But overall, money is tighter.

New Jersey household debt trends in 2025 show rising strain

The composition of that $18.78 trillion matters. Mortgage debt remains by far the largest piece, about $13.17 trillion in 2025. It also drove much of the increase from last year, rising by roughly $228 billion. In a state like New Jersey, where home prices are high to begin with, that number carries weight. Even those who locked in lower interest rates a few years back are dealing with rising property taxes that never seem to take a year off. For new buyers, the combination of price and rate can feel prohibitive.

Credit card debt also continued to climb, up about $34 billion year over year, reaching around $1.28 trillion nationally. Student loan balances ticked up as well, increasing by about $6 billion to roughly $1.66 trillion. Auto loans were the one major category that dipped slightly, down about $32 billion, settling near $1.67 trillion after years of steady growth. That small decline does not necessarily signal relief. It may simply reflect people holding on to older cars longer because replacing them is out of reach.

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Property taxes, high home prices and mortgage rates squeeze NJ homeowners

Here in New Jersey, the pressure points are familiar. Property taxes edge up year after year. Utility bills have hit record highs. Over the past year, layoffs across several sectors have left families uneasy about job security. Even for those still employed, wages often have not kept pace with housing, food, insurance, and energy costs. Paying down debt has become more difficult, not less.

The adjustments are subtle but real. Fewer dinners out. More meals cooked at home. Vacations postponed or shortened. Old cars maintained instead of traded in. Side hustles picked up in the evenings or on weekends to fill the gaps. These choices do not show up directly in the $18.78 trillion figure, but they are part of the story behind it.

Credit card debt and cost of living pressures hit NJ families

Mortgage debt may dominate the totals, yet it is the steady rise in everyday borrowing, especially on credit cards, that reflects how many households are managing shortfalls month to month. The national data confirms what many New Jersey families already sense. Even if the economy looks steady from a distance, the margin for error feels thinner. The numbers explain part of it. The lived experience fills in the rest.

Calls for political accountability on the economy in New Jersey

It is time our politicians get a little more in touch with the people they are supposed to serve and be honest about the economy. Families do not need repeated self promotional lines about how well things are going. They need practical relief and straight answers about what is being done to make it easier to afford a home, pay down debt, and keep up with the bills that arrive every month.