US household debt falls 0.1% in Q2 2026 to $18.8 trillion

U.S. household debt slipped by $13 billion in the second quarter of 2026 to $18.8 trillion, the first quarterly decline since the pandemic disruptions of 2020, as a sharp drop in mortgage balances more than offset continued growth in credit cards, auto loans and home equity lines. Mortgage balances fell by $74 billion to $13.1 trillion, though analysts said reporting gaps tied to servicer transfers may have temporarily removed some loans from the data, while mortgage originations were relatively steady at $505 billion. Student-loan balances also declined by $7 billion to $1.65 trillion as repayment programs continued to work through the system and no major new lending surge emerged. At the same time, credit card balances rose by $21 billion to $1.26 trillion, auto loans increased by $28 billion to $1.71 trillion, and HELOCs climbed by $13 billion to $459 billion, marking a 17th straight quarterly increase even though balances remain well below the more than $700 billion peak seen before the 2008 financial crisis. The overall delinquency rate eased to 4.7% of outstanding debt in some stage of delinquency, suggesting household balance sheets remain broadly resilient despite elevated borrowing in several consumer credit categories.

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