US consumer debt held largely steady in the second quarter of 2026, with total outstanding balances reaching $18.25 trillion; a signal that the credit market may be finding its footing after years of post-pandemic expansion, according to new data from Equifax.
The figure represents a modest 0.32% increase from the first quarter and a 2.1% rise year-over-year, adding roughly $400 billion to the total debt burden over the past 12 months. For financial advisors and wealth managers watching credit conditions as a barometer for client financial health, the latest numbers offer cautious encouragement.
"We are witnessing a period where top-line consumer data suggests retail and mortgage credit is stabilizing," said Emmaline Aliff, advisory leader at Equifax. She added that while consumers took on more debt in the second quarter, mortgage debt continues to account for the majority of total consumer obligations.
First mortgage balances as the largest single component of consumer debt grew 1.9% year-over-year to $12.845 trillion in June 2026, reflecting continued but moderating growth in the housing sector.
Home equity lines of credit, or HELOCs, posted the sharpest expansion of any debt category, surging 12.5% over the same period to $444.8 billion. That growth suggests homeowners are increasingly tapping equity as an alternative to refinancing in a still-elevated rate environment.
On the delinquency front, 90-plus-day past-due mortgage delinquencies rose 40.6% from year-ago levels — though that comparison is measured against the unusually low delinquency rates seen in mid-2025. More notably, those severe delinquencies have fallen 3.6% since May 2026, a trend that analysts may view as an early stabilization signal worth monitoring.
Auto loan balances increased 2.8% year-over-year to $1.626 trillion, a pace that reflects persistent vehicle demand even as affordability remains stretched for many households. Credit card debt, a key measure of consumer financial stress, rose 3.9% annually to $1.1085 trillion.
Viewed over a two-year window, bankcard balances have grown approximately 8.2%, expanding from roughly $1.02 trillion in June 2024. That rate of growth outpaces cumulative inflation over the same period, estimated at around 6.5%, suggesting real increases in credit card reliance among American consumers.
In contrast to other categories, student loan balances declined 3.1% year-over-year to $1.287 trillion, continuing a gradual contraction that reflects a combination of repayment activity, loan forgiveness programs, and shifting enrollment patterns. The decline may ease some of the financial pressure on younger investor demographics that advisors have increasingly sought to serve.
The overall stabilization of top-line debt, combined with improving delinquency metrics in mortgages, suggests the consumer credit cycle may be moving past a period of heightened stress, even as credit card dependency and HELOC expansion warrant continued scrutiny.
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