Consumer Debt Service Ratio: 5.37% in Q3 2025

The consumer dsr moved to 5.37% in Q3 2025, up 0.07 from 5.30% in Q2 2025. Year-over-year, the reading is down 0.02 from 5.39%.

Source: Federal Reserve (FRED Series CDSP) Data through Q3 2025 Next release: ~Feb 2026
Current Consumer DSR
5.37%
Q3 2025 ↑ 0.07pp
Year Ago
5.39%
Q3 2024 0.02pp down
10-Year Average
5.36%
Current is above avg by 0.01pp

Consumer DSR - Historical Chart

Consumer Debt Service Payments as a Percent of Disposable Personal Income. Gray shaded areas indicate U.S. recessions.

0.0%2.0%4.0%6.0%8.0% 5.4% 20052010201520202025

Source: Federal Reserve Bank of St. Louis (FRED), Series CDSP. Shaded areas = NBER recession dates. Updated 2026-03-10.

What the Q3 2025 Data Shows

At 5.37%, the consumer dsr in Q3 2025 is above the 10-year average of 5.36% by 0.01pp. The reading has been mixed recently, fluctuating without a clear directional trend over the past 4 quarters.

The consumer debt service ratio (FRED series CDSP) strips out mortgage payments and focuses on consumer installment and revolving credit obligations. This includes auto loans, credit card payments, student loans, and other personal lending. Because these debts generally have shorter terms and more rate exposure than mortgages, the consumer DSR reacts faster to interest rate changes.

The ratio has been climbing as credit card rates follow the fed funds rate higher and auto loan rates increase. Student loan payments, which were paused during the pandemic, have resumed for most borrowers, adding to the burden.

Quarterly data from the Federal Reserve Board.

What This Metric Measures

This page tracks the ratio of aggregate consumer (non-mortgage) debt service payments to disposable personal income, covering auto loans, credit cards, student loans, and personal installment credit. The data comes from the Federal Reserve Bank of St. Louis FRED database, series CDSP, updated quarterly.

Historical Context

The all-time peak was 7.31% in Q4 2005 — roughly 1.4x the current level. The all-time trough was 4.29% in Q1 2021. During COVID-19 in 2020, the reading hit 5.67% (Q1 2020). Year-over-year, the metric has moved -0.4%.

Why It Matters

Consumer credit cards average 20%+ APR. Auto loans are running 7-9% for new cars. When the consumer DSR rises, it means households are sending more of their paycheck to credit card companies and auto lenders, leaving less for discretionary spending. If you run a restaurant, retail store, or any consumer-facing business, the consumer DSR is a direct predictor of your customers' willingness to spend.

What This Means for Business Owners

Understanding where this metric stands relative to historical norms helps business owners make better borrowing decisions. Metrics far from their 10-year average often signal turning points that affect the cost and availability of credit.

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Consumer Debt Service Ratio - Frequently Asked Questions

What is the consumer debt service ratio?

The consumer DSR is 5.37% as of Q3 2025, per FRED series CDSP. This measures non-mortgage debt payments (auto, cards, student loans, personal loans) as a share of disposable income.

Is consumer debt service rising?

Yes. Credit card APRs have followed the fed funds rate higher, and auto loan rates have increased significantly. Student loan repayment resumption is also adding to the burden. The ratio has been climbing from pandemic lows.

How does this compare to the total household DSR?

The consumer DSR is a subset of the total household DSR (TDSP). The total includes mortgage payments. Because many homeowners locked in low mortgage rates, the total DSR is rising slower than the consumer portion.

What types of debt are most affected by rate increases?

Credit cards are most affected because rates are variable and tied to prime. Auto loans affect new buyers at origination. Student loans are mostly fixed-rate. The mix means rate increases flow through to the consumer DSR gradually as new borrowing occurs at higher rates.

At what level does consumer debt service become problematic?

The consumer DSR has historically ranged from 5% to 6.5%. Above 6%, consumer credit stress tends to rise visibly in delinquency data. The ratio peaked near 6.5% before the Great Recession.

Where does this data come from?

FRED series CDSP from the Federal Reserve Board. Quarterly, seasonally adjusted. A companion to the broader household DSR (TDSP) and financial obligations ratio (FODSP).

Related Data & Guides

Data sourced from the Federal Reserve Economic Data (FRED) maintained by the Federal Reserve Bank of St. Louis. Updated monthly when new data is released.