Wednesday 12 / August / 2026
New York: Household debt balances decreased slightly while credit card delinquency transition rates remained steady in the second quarter of 2026, according to the Federal Reserve Bank of New York.
The findings, published in the Federal Reserve Bank of New York's Center for Microeconomic Data Quarterly Report on Household Debt and Credit, revealed total household debt decreased by $13 billion, or 0.1 per cent, to stand at $18.771 trillion.
Despite the quarterly dip, total debt expanded by $383 billion compared to the same period in the previous year. The data, collected from the New York Fed's nationally representative Consumer Credit Panel, showed aggregate delinquency rates improved slightly in the second quarter, with 4.7 per cent of outstanding debt in some stage of delinquency.
"Delinquency rates across most products have held steady over the past two years," said Joelle Scally, Economic Policy Advisor at the New York Fed.
"Still, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we'll continue to monitor," Scally added.
Mortgage balances led the quarterly decline, dropping by $74 billion to total $13.117 trillion at the end of June, though annual mortgage growth remained positive with a $182 billion increase. Mortgage originations held steady with $505 billion newly originated during the quarter.
Transition rates into serious delinquency, defined as 90 days or more delinquent, for mortgage debt stood at 1.52 per cent in Q2 2026 compared to 1.29 per cent in Q2 2025.
Home equity lines of credit (HELOC) balances rose by $13 billion to $459 billion, which registered a $48 billion increase year-over-year and stood $142 billion above the trough reached in the first quarter of 2022. HELOC limits increased by $19 billion. The serious delinquency rate for HELOC remained unchanged at 1.15 per cent.
Credit card balances increased by $21 billion during the quarter to reach $1.263 trillion, marking a $54 billion annual increase. Aggregate credit card limits grew, supported by an $85 billion uptick in credit limits earlier in the year.
Credit card serious delinquency transition rates reached 6.97 per cent, compared to 6.93 per cent recorded in Q2 2025.
Auto loan balances grew by $28 billion to $1.713 trillion, representing a $58 billion annual expansion, as auto loan originations picked up to $211 billion.
Serious delinquency transitions for auto loans stood at 3.00 per cent, compared to 2.93 per cent a year earlier.
Student debt balances decreased by $7 billion to $1.651 trillion, though annual figures reflected a $13 billion increase.
Transition into serious delinquency for student loans moved to 7.83 per cent from 12.88 per cent in Q2 2025, with student loan delinquencies remaining an exception due to ongoing impacts from the re-reporting of defaulted student debt.
Overall flow into serious delinquency across all debt categories fell to 2.57 per cent from 2.91 per cent recorded a year prior.
