U.S. Household Debt Slips to $18.77 Trillion

The headline

The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, released August 11, 2026, shows total household debt fell by $13 billion, or 0.1%, to $18.771 trillion in the second quarter. That’s still $383 billion more than a year earlier.

The dip came from mortgages. Most other kinds of borrowing grew, including credit cards, auto loans and home equity lines of credit (HELOCs).

Where the debt is

Source: Federal Reserve Bank of New York. Shares calculated by Riverstone. The remaining balance, about $0.57 trillion by subtraction, is other consumer debt such as retail cards and other loans.

Credit cards keep climbing

Card balances rose $21 billion in the quarter to $1.263 trillion, $54 billion more than a year earlier. Balances usually dip in the first quarter as people pay off holiday spending, then rise again, so a second-quarter increase is normal. What matters for most households is the price of carrying that balance: the Federal Reserve’s average card APR on accounts charged interest was 22.36% in August 2026.

Delinquency: mostly steady, with exceptions

Overall, 4.7% of outstanding debt was in some stage of delinquency in Q2 2026, slightly better than the prior quarter. But the picture differs by type of debt. The New York Fed tracks the share of balances that moved into serious delinquency (90 or more days late) over the year:

Card delinquency transitions held roughly flat at a high level. Mortgage transitions rose from a low base. Student loans remain distorted by the return of reporting on defaulted federal student debt, which the New York Fed flags as an exception.

Higher rates make carried balances cost more

Since these figures were collected, borrowing got slightly more expensive. On September 16, 2026, the Federal Reserve raised its target range by a quarter point to 3.75%–4.00%, its first increase since July 2023. Major banks raised the prime rate from 6.75% to 7.00% the next day.

Most credit cards have variable rates tied to prime, so card APRs tend to move up after a hike. A quarter-point increase adds about $12.50 a year in interest on a $5,000 balance carried all year. That is small on its own, but it comes on top of an average card APR already above 22%.

Fixed-rate loans you already have don’t change. New offers may price a little higher. Our Fed rate tracker follows each decision; the next one is due October 28.

Why other reports show different totals

You may see slightly different numbers elsewhere. TransUnion, for example, counted $18.6 trillion in total consumer balances in Q2 2026 across 261.7 million consumers with a balance, and $1.14 trillion in bank card balances. The New York Fed builds its figures from a nationally representative sample of anonymized Equifax credit data, while TransUnion uses its own credit database and definitions, so the totals don’t match exactly. The direction is the same in both: total debt is growing slowly, and card balances keep rising.

What it means for your budget

• Card debt is the costly part. It’s only about 7% of household debt, but at around 22% APR it’s usually the most expensive. Paying it down first frees up the most cash.
• Consolidating can help if the rate is lower. A fixed-rate personal loan averaged 11.90% at banks for 24 months in August 2026. Our guide on debt consolidation shows when it saves money and when it doesn’t.
• Stay current on every account. A single serious delinquency can lower a credit score sharply and stay on your report for years. See how credit scores work.

Thinking about a small loan? Riverstone connects you with lenders for $200–$5,000. Check your payment with our calculators before you apply.

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