More Americans Are Having a Harder Time Keeping up with Their Home, Car Payments
Balances rose $21 billion in the second quarter as 60% of cardholders carried revolving debt, the New York Fed said.
- On Tuesday, the Federal Reserve Bank of New York reported that credit card balances rose $21 billion in the second quarter to $1.26 trillion, nearing last year's all-time high of $1.28 trillion.
- New York Fed researchers attributed the rise to a 'K-shaped economy' where many households live paycheck to paycheck; 55% of consumers carry credit card balances to cover essential expenses.
- The share of balances more than 90 days past due jumped to 12.8% from 7.6%, though researchers noted this 'is a lagging indicator' reflecting past charge-off debts sticking around on credit reports.
- While late-stage delinquency rose, new credit card delinquencies remain stable at roughly 7%, with researchers concluding the pace has been largely stable since 2024.
- Auto loan originations reached a record $211 billion, and home equity loans rose $19 billion as older homeowners substitute borrowing to avoid high mortgage rates.
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US Household Debt Drops by USD 13 Bn to USD 18.8 Tn in Q2 2026: Federal Reserve Bank of New York
Get latest articles and stories on Business at LatestLY. 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. Business News | US Household Debt Drops by USD 13 Bn to USD 18.8 Tn in Q2 2026: Federal Reserve Bank of New York.
U.S. Household Debt Dips $13 Billion in Q2 as Mortgages Fall and Delinquencies Hold Steady
The numbers landed with little fanfare on a Tuesday in August. Total U.S. household debt slipped by $13 billion in the second quarter. That works out to a 0.1 percent decline, bringing the aggregate to $18.8 trillion. But the headline figure masks a more complicated picture of American borrowing habits. One that mixes resilience with pockets of strain. Mortgage balances drove the drop. They fell $74 billion to $13.1 trillion. A technical quirk i…
More Americans are falling behind on their mortgage and auto loans than at any other time in the past decade, according to data released Tuesday by the Federal Reserve Bank of New York.
New York Fed data shows K-shaped economy isn’t over yet—even if Trump’s treasury secretary says it is
Data from the Federal Reserve Bank of New York is shedding new light on the current state of the American economy. On Tuesday, the New York Fed issued its Quarterly Report on Household Debt and Credit, and an accompanying blog post on credit card delinquency. The report found that while household debt saw a modest quarterly decrease, credit card balances actually rose to a staggering $1.26 trillion.“To us, it reflects this K-shaped economy,” res…
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