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Americans owe $18.59 trillion, with credit card balances climbing

U.S. household debt hit a record $18.59 trillion in Q3, driven by rises in mortgage, credit card and student loan balances, with delinquencies still high.

Buy now, pay later plans can look enticing as they can split large purchases into smaller, more manageable ones, but experts warn they can rope you into even more debt.

Legal expert warns of buy now, pay later plans this holiday shopping season

By: Justin Boggs , Jennifer Glenfield

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American household debt reached a new record high in the third quarter.

The Federal Reserve Bank of New York reported total debt balances rose to $18.59 trillion between July and September, a $197 billion increase from the previous quarter.

Mortgage debt grew by $137 billion to $13.07 trillion. Credit card balances jumped $24 billion and are now 5.75% higher than a year ago.

Delinquency rates remain elevated, with 4.5% of debt in some stage of late payment.

The report said that student loan balances rose by $15 billion and now stand at $1.65 trillion.

The median credit score for new auto loans remained steady, but the report also found that some tightening of subprime lending standards.

Legal expert warns of buy now, pay later plans this holiday shopping season