Household Debt Declines Slightly Amid Steady Delinquency Rates in Q2 2026

The Federal Reserve Bank of New York reported a slight decrease in household debt in Q2 2026, with balances falling by USD 13 billion to USD 18.771 trillion. Credit card delinquency rates held steady, while mortgage, auto loan, and student debt categories saw changes in balances and delinquency trends.

In the second quarter of 2026, household debt in the United States experienced a modest decline, according to data from the Federal Reserve Bank of New York. The bank's Center for Microeconomic Data reported that total household debt fell by USD 13 billion, or 0.1 percent, settling at USD 18.771 trillion.

Despite this quarterly reduction, debt levels have grown by USD 383 billion compared to the previous year. Credit card delinquency rates remained steady, with 4.7 percent of outstanding debt in some stage of delinquency. Joelle Scally, Economic Policy Advisor at the New York Fed, noted a consistent delinquency rate across most products over the past two years.

Mortgage balances were a significant contributor to the debt reduction, dropping by USD 74 billion to USD 13.117 trillion, while auto loans and student debts showed differing trends. Notably, credit card balances increased by USD 21 billion during the quarter. Transition rates into serious delinquency for credit cards were recorded at 6.97 percent.