Household Debt at New Record Is Squeezing Low-Income Americans

US household debt climbed to a fresh high last quarter, with rising incomes leaving many consumers able to manage the burden, but lower-income groups showing signs of financial strain.

Higher debt levels for mortgages, auto loans, credit cards and student loans last quarter drove overall consumer debt to a new record of $17.9 trillion, according to the Federal Reserve Bank of New York. Households in the aggregate saw incomes rise more than their debt, but younger consumers and lower earners faced more strain, Fed researchers said.

For the 10th consecutive quarter, more homeowners borrowed against the equity in their homes, ...