U.S. household debt reaches record level, then shows inflation‑adjusted decline

New York Federal Reserve data for the first quarter of 2024 show U.S. household debt climbing to a new all‑time high of $18.8 trillion, driven by mortgages ($13.2 trillion) and auto loans ($1.69 trillion). While credit‑card balances fell modestly, more than 10 % of loan balances were past due, and younger and low‑income borrowers showed signs of strain. The report linked higher oil prices from the Iran conflict to rising consumer costs and noted that 23 % of Americans felt they were falling behind financially.

A later 2026 analysis by WalletHub, which adjusts the New York Fed figures for inflation, indicates that total household debt fell slightly to $18.79 trillion, a figure $1.1 trillion below the nominal peak. Mortgage debt decreased by $229 billion to $13.19 trillion, auto‑loan debt dropped $14 billion to $1.68 trillion, and home‑equity line debt rose modestly by $4 billion. The adjusted debt‑to‑assets and debt‑to‑deposits ratios also improved, suggesting a more stable position for consumers compared with earlier years.