U.S. consumer debt hit a record $18.19 trillion in March 2026, up 2.8% from the same month a year earlier, according to Equifax’s latest Market Pulse credit trends report released May 28. The all-time high was driven largely by an expansion in subprime borrowing, particularly among consumers using credit cards to manage rising living costs in what analysts describe as a widening economic divide.
Subprime bankcard originations surged 18.6% year-over-year through January 2026, while credit limits for this group jumped 37.6% over the same period, Equifax reported. Revolving credit balances overall climbed nearly 4% annually, outpacing the March inflation rate of 3.3%, signaling that lower-income borrowers are increasingly relying on credit as a necessity rather than a convenience.
“We are seeing an expansion in the subprime market that underscores the widening gap of the K-shaped economy,” said Maria Urtubey, Equifax Advisor. “Lenders originating more bankcard accounts for consumers in subprime while also increasing total credit limits suggests that, for the lower economic tier, credit may have moved beyond a financial tool and may be becoming a necessity for managing the rising costs of living.”
The debt composition remained heavily weighted toward mortgages, which grew by $21 billion in Q1 2026 to reach $13.19 trillion, according to New York Federal Reserve data. Home equity lines of credit (HELOCs) showed particularly sharp growth, rising 13% year-over-year to $431 billion by March, while auto loan balances climbed 1.5% to $1.599 trillion.
Student loan delinquencies painted a darker picture. The 90-plus-days-past-due rate reached 17.01% in March, marking the fourth consecutive month of increases, though Equifax noted the rate remained more than 9% below the historic peak from May 2025. Fewer student loans were being originated—down more than 10% year-over-year—yet the dollar amount originated still rose 4.7%, reflecting the rising cost of education.
Outside student loans, most delinquency rates improved. Unsecured personal loan delinquencies fell from 3.49% in March 2025 to 3.18% a year later, bankcard delinquencies dropped from 3.09% to 2.97%, and auto loan delinquencies edged down from 1.51% to 1.49%. However, write-off rates climbed, suggesting lenders are proactively recognizing losses that became delinquent months earlier.
The record debt level reflects a broader pattern of consumer financial pressure even as some credit metrics stabilize. Total household debt, a broader measure that includes mortgages, reached $18.8 trillion in Q1 2026, up just $18 billion from the previous quarter, according to the New York Fed. The modest quarterly gain contrasts with the year-over-year growth, underscoring how debt accumulation has slowed but remains elevated as Americans navigate persistent inflation and evolving credit standards.
Sources
- Equifax — Q1 2026 Market Pulse consumer credit trends report, including debt balances by category, subprime origination and credit limit data, and delinquency rates through March 2026
- Federal Reserve Bank of New York — Household Debt and Credit Report, Q1 2026 quarterly data on total household debt, mortgage balances, and quarterly changes
