American household debt climbed to $19.1 trillion in the third quarter of 2026, increasing by $334 billion, or 1.8%, from the previous quarter, according to a report by the Federal Reserve Bank of New York. Housing-related borrowing accounted for most of the increase, while credit card debt also continued to grow.
The latest report highlights the growing financial obligations of American households, although not all indicators of repayment are deteriorating.
Credit Card Debt Reaches $1.29 Trillion
Credit card balances increased by $22 billion during the quarter, reaching approximately $1.29 trillion.
Mortgage debt rose by $257 billion, while home equity lines of credit (HELOCs) reached $481 billion. Their quarterly increase of $23 billion was the largest recorded since 2005.
These figures reflect continued borrowing by American consumers, particularly through housing-related loans.
More Household Debt Is Falling Behind on Payments
The share of total household debt in some stage of delinquency increased to 5% in the third quarter, compared with 4.7% in the previous quarter.
However, there was a slight improvement in the rate at which credit card accounts transitioned into serious delinquency.
This distinction is important: rising total debt does not necessarily mean that every measure of borrowers’ ability to repay is getting worse.
Lower-Income Communities Face Greater Financial Pressure
A separate analysis published by New York Fed economists on the same day found that financial difficulties are increasingly concentrated in lower-income communities.
The gap in new serious credit card delinquencies between residents of lower-income and wealthier neighborhoods has widened since 2022.
Researchers examined income levels across ZIP code areas rather than the individual earnings of each credit card holder.
During the pandemic, a larger share of newly issued credit cards and credit limits went to residents of lower-income neighborhoods. At the same time, banks extended credit to borrowers with weaker credit scores.
The median credit score at the time of card issuance declined from 699 in 2017–2019 to 688 during 2020–2022.
Economists See Some Signs of Improvement
The researchers also found that delinquency rates on credit cards issued during the pandemic are now declining.
If the economy avoids additional shocks, they expect further signs of improvement. However, they caution that the underlying financial challenges have not been resolved.
The findings are based on anonymized credit reports from Equifax and cover consumer borrowing between July and September 2026.
Importantly, the $19.1 trillion figure represents debt owed by American households, not the U.S. government’s national debt. The distinction is essential when evaluating the financial health of American consumers and the broader economy.
