United States household debt reached an all-time high of $18.8 trillion in the first quarter of 2026, according to new data released Tuesday (May 12) by the Federal Reserve Bank of New York. The increase was fueled mainly by higher balances on mortgages and auto loans, even as credit card debt dipped compared to the previous quarter.
The Federal Reserve Bank of New York reported that mortgage balances climbed by $21 billion to $13.19 trillion, while auto loan balances grew by $18 billion to $1.69 trillion. Home equity lines of credit (HELOCs) also increased by $12 billion, reaching $446 billion.
Credit card balances saw a seasonal drop of $25 billion, ending the quarter at $1.25 trillion. Despite this short-term decline, credit card debt is still up by $70 billion over the past year. Student loan debt fell slightly to $1.66 trillion, but more than 10% of those balances are now past due—levels approaching those seen before the COVID-19 pandemic, the New York Fed noted.
Daniel Mangrum, a research economist at the New York Fed, said, “Aggregate household debt levels rose slightly, with modest increases in most debt types offsetting a seasonal decline in credit card balances.” He also noted that “delinquency transition rates were mostly steady, while student loan delinquencies are returning to pre-pandemic levels.”
Overall, 4.8% of outstanding household debt was in some stage of delinquency at the end of March, about the same as in the previous quarter, according to the New York Fed. Delinquency rates for auto loans remained steady, while those for credit cards and mortgages ticked down slightly.
The record debt levels come as Americans face rising inflation. Government data showed consumer prices increased 3.8% in April compared to the previous year, marking the highest annual inflation rate in three years.
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