Household debt nears 2022 levels

November 11, 2026

Nominal household debt increased 1.8% to $19.11 trillion in the third quarter, the biggest increase since 2022 according to the Household Debt and Credit report from the Federal Reserve Bank of New York. The expansion in debt nearly matches a period when consumer prices reached over 9% annually in 2022. Older borrowers (50+) reduced their debt or declined to take on more but most consumers took on additional debt.

Delinquencies increased to almost 5% of all debt; that’s the highest since 2016. With inflation exceeding wage growth, servicing debt may become more onerous for households. 

Seriously delinquent (90 days or more) student loans moved higher to nearly 11%, a six year high. Transitions into serious delinquency increased only slightly to 7.8% of debt; that is a notable improvement from 16.2% at the end of last year.

A recent change in the rules for student loans could mean higher payments and greater stress for borrowers. More than seven million student loan borrowers enrolled in the Savings on a Valuable Education (SAVE) plan. Those who do not choose a new plan will be moved into one with fixed payments, which would likely raise household expenses and even risk delinquency or default. Gen X borrowers could be hit hardest because they are part of the sandwich generation, supporting children and older relatives. 

Credit card debt grew 1.7% again. New, 30-day delinquencies slipped to 8.4% from 8.7% while serious delinquencies held steady at 12.9%. Transitions into serious delinquencies were flat at 6.9%.

Disposable personal income adjusted for inflation edged lower in September. Incomes have risen, but inflation has eaten into take-home pay. Inflation has outpaced wage gains for seven months in a row. The personal savings rate was revised higher for the previous year. That partially explains why consumption has remained so resilient. 

Savings have declined recently; the 3.8% rate in September is the lowest since 2022 when consumers were facing a 9% inflation rate. A stable labor market with low unemployment, wealth effects at the top of the income distribution and increased credit are supporting consumption.

Auto loans rose 1.2% in the third quarter after increasing 1.7% in the prior quarter. New, 30-day delinquencies edged higher to 8% from 7.9%; serious delinquencies increased to 5.7% from 5.5% - a record high. The average transaction price for a new vehicle topped $51,000 in October, an all‑time high, according to Cox Automotive. More than 25% of new vehicle loans had terms of at least seven years, another new record. Consumers increasingly must stretch out their payments to get a new vehicle. Transitions into serious delinquencies were flat at 3%. 

The Senior Loan Officer Opinion Survey (SLOOS) by the Federal Reserve found that banks left standards basically unchanged for credit card loans, auto loans and HELOCs in the third quarter. Demand strengthened for credit card loans, weakened for auto loans and stayed the same for HELOCs.

Mortgage balances rose 2% after a 0.5% drop in the second quarter. Seriously delinquent mortgage loans rose to 1.1% from 1% while transitions into serious delinquency edged up to 1.6% from 1.5%. 

Home equity lines of credit (HELOC) balances increased by $22 billion, the largest quarterly increase since 2025 and the 18th straight quarter of gains. New foreclosures and bankruptcies were flat in the third quarter, remaining below pre-pandemic averages.