US Household Debt Drops for First Time Since 2020
Total US household debt fell $13 billion in Q2 2026 to $18.77 trillion, the first quarterly decline since the 2020 pandemic period.
US household debt declined by $13 billion in Q2 2026 to $18.77 trillion, according to data shared by The Kobeissi Letter. That leaves total debt at the third-highest level on record and marks the first quarterly decrease since the 2020 pandemic.
The drop was driven by mortgage balances, which fell $74 billion to $13.12 trillion. Student loan debt also slipped $7 billion to $1.65 trillion, its lowest level since Q2 2025.
Meanwhile, credit card balances rose $21 billion to $1.26 trillion, the second-highest on record, and auto loans increased $28 billion to $1.71 trillion, an all-time high. Since the end of 2019, total household debt has risen by $4.63 trillion.
Source: The Kobeissi Letter