US household debt drops by $13bn to $18.8tn in Q2 2026

U.S. household debt saw a marginal decrease of $13 billion, bringing the total to $18.771 trillion in the second quarter of 2026, as reported by the Federal Reserve Bank of New York. This slight dip represents a 0.1 percent reduction from the previous quarter.

However, when viewed year-over-year, total household debt has expanded by $383 billion. Mortgage balances were the primary driver of the quarterly decline, dropping by $74 billion to $13.117 trillion. Despite this, mortgage originations remained stable, with $505 billion in new loans issued during the quarter.

Aggregate delinquency rates across most debt products have held steady for the past two years. Joelle Scally, Economic Policy Advisor at the New York Fed, noted that while overall rates are stable, "new delinquencies for auto loans and credit cards remain at elevated levels, a trend we'll continue to monitor."

Credit card balances increased by $21 billion to $1.263 trillion, a $54 billion rise from the previous year. Auto loan balances also grew by $28 billion to $1.713 trillion, reflecting a $58 billion annual expansion. Student loan balances decreased by $7 billion, though annual figures show a $13 billion increase. The overall flow into serious delinquency across all debt categories fell compared to the prior year.

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Delinquency rates across most products have held steady over the past two years. Still, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we'll continue to monitor.