---
title: US Household Debt Fell in the Second Quarter While Student Loan Delinquency Rose
description: US household debt fell $13 billion to $18.8 trillion in the second quarter of 2026, while student loan delinquency rose to 10.6%.
author: Darie Nani (Editor-in-Chief)
date: 2026-08-12T08:36:40.631Z
updated: 2026-08-12T08:36:40.639Z
canonical: https://www.sovereignmagazine.com/article/us-household-debt-fell-q2-2026-student-loans
image: https://cdn.nanimediahouse.com/us-household-debt-q2-2026-141774.webp
categories: Economy
content_type: News
region: United States
publication: Sovereign Magazine
schema_type: Article
---

US household debt balances fell in the second quarter of 2026, down $13 billion to $18.8 trillion, and the share of debt in some stage of delinquency edged down with them, according to the Federal Reserve Bank of New York's [quarterly report on household debt and credit](https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2026Q2.pdf). Student loans were the exception, with delinquency rising again.

The 0.1% decline leaves balances $4.6 trillion above where they stood at the end of 2019, before the pandemic recession. The figures come from the New York Fed Consumer Credit Panel, an anonymized, nationally representative sample drawn from Equifax credit report data.

## Delinquency Eased, With Auto Loans and Mortgages Ticking Up

At the end of June, 4.7% of outstanding debt was in some stage of delinquency, down 0.1 percentage point on the quarter. Underneath that, transitions into early delinquency rose slightly for auto loans and mortgages, held steady for credit cards and other debts, and improved for home equity lines of credit. Transitions into serious delinquency were largely unchanged.

About 137,000 consumers had a bankruptcy notation added to their credit reports during the quarter, a small increase, and about 55,000 had a new foreclosure recorded, a slight improvement. The share of consumers with a third-party collection account held at 4.9%.

## Student Loan Delinquency Rose to 10.6%

Outstanding student loan debt stood at $1.65 trillion, and the share of those balances 90 or more days past due rose to 10.6% from 10.3% in the first quarter.

That continues a return to pre-pandemic conditions that New York Fed researchers [traced in May](https://libertystreeteconomics.newyorkfed.org/2026/05/federal-student-loan-defaults-return-after-pandemic-pause/), after the pandemic payment pause ended in September 2023. The average borrower entering default is nearly 40 years old, was not behind on student loans before the pandemic, and is more likely to live in the South. Borrowers in default are more likely to be behind on other debts as well, though the researchers judged the overall scope still relatively low and called fears of contagion to other credit products premature.

## Card and Auto Balances Grew While Mortgage Balances Fell

Mortgage balances fell $74 billion to $13.1 trillion, a decline the New York Fed attributes mostly to a servicer transfer gap in mortgage reporting; without it, balances would have stayed flat. [Mortgage originations](https://www.sovereignmagazine.com/article/mortgage-rates-july-2026-lock-volume) were steady at $505 billion, and the credit quality of new mortgages was unchanged. Home equity lines of credit rose $13 billion to $459 billion, a 17th consecutive quarterly increase and $142 billion above the low reached in early 2022.

Non-housing debt grew $48 billion, or 0.9%. Auto balances rose $28 billion on $211 billion of new originations, and the credit quality of those new loans slipped, with the median credit score down seven points. Credit card balances rose $21 billion, while aggregate card limits rose $85 billion, or 1.1%. Student loan balances fell slightly.

The Federal Reserve's separate G.19 consumer credit release shows consumer credit growing at a seasonally adjusted annual rate of 2.6% over the quarter, with revolving credit at 3.9% and nonrevolving credit at 2.1%. In June alone the rate was 3.3%.

Equifax, whose credit report data underlies the New York Fed panel, publishes its own quarterly cut. The company put total US consumer debt at $18.25 trillion through June, up 2.1% on the year, and said the rise came mainly from mortgage and revolving bank card debt.

## FAQ

**Q: What is the current level of US household debt?**
US household debt totaled $18.8 trillion at the end of the second quarter of 2026, down $13 billion on the quarter but $4.6 trillion above its level at the end of 2019.

**Q: What is happening with student loans in 2026?**
Student loan delinquency is rising while most other categories improve. The share of balances 90 or more days past due reached 10.6% in the second quarter, up from 10.3% in the first, as defaults return following the September 2023 end of the payment pause. New York Fed researchers say the scope remains relatively low and consider contagion to other credit products premature.

**Q: Is a delinquency the same as a default?**
No. The New York Fed's headline delinquency measure tracks balances 90 or more days past due. Federal student loan default is a separate, more serious status that follows a longer period of non-payment, and it is the one the New York Fed's May analysis found resurfacing after the pandemic pause ended.