Total U.S. consumer debt hit $18.25 trillion in the second quarter of 2026, marking a 2.1% year-over-year increase. While mortgage obligations continue to anchor the bulk of household debt, new data from Equifax points toward a broader stabilization trend as delinquency rates improve across major lending categories.
The modest 0.32% quarterly rise in total debt signals a cooling period for American borrowers, even as revolving bankcard and mortgage balances sustain annual growth. According to Equifax, mortgage debt remains the primary driver, representing roughly 74% of the total, with home equity lines of credit showing a notable 12.5% jump over the past year.
Emmaline Aliff, advisory leader at Equifax, noted that retail and mortgage credit appear to be finding a new baseline. While consumers paid down seasonal credit card debt early in the year, a renewed reliance on revolving credit emerged in the second quarter. This shift is mirrored in the non-mortgage sector, where bankcard debt has reached $1.1 trillion, growing 8.2% since 2024—a rate that outpaces inflation.
Perhaps most significant is the cooling of delinquency rates. Automotive, bankcard, and unsecured personal loan portfolios all registered downward trajectories compared to previous months. Even in the mortgage sector, where 90-day delinquencies were elevated compared to mid-2025 lows, there was a 3.6% improvement since May. This suggests that while household budgets remain pressured by vehicle and living costs, the aggressive climb in non-payment risks has begun to level off.
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