US Household Debt Hits Record High as Delinquencies Surge

U.S. household debt rose 6.3% year‑over‑year in the first quarter of 2026, reaching about $15.8 trillion, while total debt is now near $19 trillion, the highest level in history. The Federal Reserve Bank of New York reported that 14.2% of borrowers were delinquent on payments, with auto‑loan delinquencies at an all‑time high, credit‑card delinquency at 13.1%—the highest in 16 years, and student‑loan delinquency at 10.3%, the worst since 2020.

Foreclosure activity spiked, with more than 42,400 filings in April 2026, an 18% increase over the previous year. In Seattle, housing inventory doubled and prices began to fall, reflecting a historic inventory shock driven by layoffs and unaffordability. The Federal Reserve’s benchmark rate remains at 5.25%, squeezing consumer borrowing costs and contributing to a slowdown in consumer‑spending growth, which fell to a 3.1% annualized rate.

Analysts warned that “the debt burden is a ticking time bomb for discretionary sectors,” as higher borrowing costs and delayed payments threaten corporate balance sheets and the broader economy.