Household Debt Edged Up to $18.8 Trillion in 1Q — New York Fed

By Jessica Coacci

Household debt climbed slightly in the first quarter as modest increases in most debt types offset a seasonal decline in credit card balances, a report released by the New York Fed said Tuesday.

Total U.S. household debt rose by $18 billion, or 0.1%, to $18.8 trillion in the first quarter. Mortgage balances were the largest contributor.

The survey reflects information available as of March 31. A separate report from the Federal Reserve on Thursday found consumer credit increased by $24.9 billion in March.

The report on household debt comes as consumer spending has remained relatively resilient despite a weaker mood among Americans tied to higher gas prices. Tuesday's inflation report showed what shoppers are up against: Prices rose 3.8% overall in April from a year earlier, the highest inflation rate since 2023.

Rising household debt signals an economy that is still in gear, but it can also serve as a warning. On the one hand, it shows consumers are still confident enough to borrow and spend, and that banks are willing to lend to them. On the other hand, a rise in credit-card balances over the past few years may indicate that people are having more trouble keeping up with expenses.

Mortgage balances rose by $21 billion in the first quarter to $13.19 trillion. Credit-card balances fell by $25 billion and stood at $1.25 trillion. Auto loan balance increased, while student-loan balances fell by $6 billion.

Aggregate delinquency showed little change, with 4.8% of outstanding debt in some stage of delinquency. Student loan delinquencies are returning to pre-pandemic levels, the report said.

Transitions into serious delinquency ticked up for mortgages. Meanwhile, transitions into serious delinquency for student loans, measured as a four-quarter moving sum, declined.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

May 12, 2026 11:14 ET (15:14 GMT)