US Household Debt Dips to $18.77 Trillion in Q2 2026, Debt-to-Income Ratio Lowest Since 2003
In the second quarter of 2026, total household debt in the US decreased by $23 billion (0.1%), reaching $18.77 trillion, primarily due to a $74 billion decline in mortgage balances attributed to temporary technical reporting issues, as reported by the New York Fed's Household Debt and Credit Report. While HELOC balances surged and auto loans increased, credit card debt saw a slight rise, and student loans decreased. Compared to the previous year, household debt rose by $383 billion (2.1%), marking the smallest annual growth rate since 2015. The debt-to-disposable-income ratio fell to 79.4%, the lowest since 2003, and delinquency rates for 30-119 days dropped to 1.7%. New foreclosures decreased to 55,160, while new bankruptcies rose to 136,800.
Key facts
- Total household debt dipped by $23 billion (0.1%) in Q2 2026 to $18.77 trillion.
- Mortgage balances fell by $74 billion due to temporary technical reporting issues.
- Year-over-year household debt rose by $383 billion (2.1%), smallest increase since 2015.
- Debt-to-disposable income ratio declined to 79.4%, lowest since 2003.
- 30-119 day delinquency rate dipped to 1.7% of total household debt.
- New foreclosures edged down to 55,160 in Q2.
- Third-party collections dipped to 4.9% of consumers.
- New bankruptcies edged up to 136,800 in Q2.
- New York Fed attributes rising stock delinquency rates to 'stale, charged-off debts'.
- Households hold $5.2 trillion in money market funds.
Entities
Institutions
- New York Fed
- Equifax
- Bureau of Economic Analysis
- WOLF STREET
Locations
- United States