U.S. household debt rose by $18 billion in the first quarter of 2026 to a record $18.8 trillion, according to the Federal Reserve Bank of New York.
Credit card balances declined seasonally, while mortgage, auto loan and home equity borrowing all increased.
Student loan delinquencies continued returning to pre-pandemic levels, with more than 2.6 million borrowers transferred to the Education Department’s default resolution program.
If you’re going deeper into debt just to keep your head above water, you aren’t alone. U.S. household debt rose by $18 billion in the first quarter of 2026 to a record $18.8 trillion, according to the Federal Reserve Bank of New York. But the headline number might not be as dire as it seems.
The New York Fed’s Quarterly Report on Household Debt and Credit showed total household debt increased by $18 billion, or 0.1%, to $18.8 trillion during the January-through-March period.
Mortgage balances rose by $21 billion to $13.19 trillion, while home equity lines of credit climbed by $12 billion to $446 billion, continuing a rebound in HELOC borrowing that began in 2022. Auto loan balances increased by $18 billion to $1.69 trillion.
But there was good news about credit cards
Credit card balances, however, fell by $25 billion to $1.25 trillion, reflecting what economists described as a typical seasonal decline after holiday spending. Student loan balances were essentially unchanged, slipping by $6 billion to $1.66 trillion.
“Aggregate household debt levels rose slightly, with modest increases in most debt types offsetting a seasonal decline in credit card balances,” Daniel Mangrum, a research economist at the New York Fed, said in a statement. “Delinquency transition rates were mostly steady, while student loan delinquencies are returning to pre-pandemic levels.”
The report found delinquency rates showed little overall movement. About 4.8% of outstanding debt was in some stage of delinquency during the quarter. Early-stage delinquency rates held steady for auto loans and declined slightly for credit cards and mortgages.
Problem mortgages
Still, some signs of financial strain persisted. Mortgage transitions into serious delinquency — loans becoming at least 90 days overdue — increased slightly from 1.4% to 1.5%. Serious delinquency rates for auto loans and credit cards were mostly unchanged.
Student loan repayment issues continued to draw attention as pandemic-era protections faded. The New York Fed said the student loan delinquency rate increased to 10.3% of balances that were at least 90 days past due, up from 9.6% in the previous quarter. Approximately 2.6 million borrowers more than 120 days behind on payments had their loans transferred to the U.S. Department of Education’s Default Resolution Group.
The pace of new lending remained solid. Mortgage originations totaled $530 billion during the quarter, while $182 billion in new auto loans appeared on consumer credit reports. Credit card borrowing capacity also expanded, with aggregate card limits rising by $60 billion.