The NY Federal published itslatest report on Household Debt and Creditfor the first quarter: the report showed total household debt increased by $18 billion, just a 0.1% increase, in Q1 2026, to $18.8 trillion.
The volume of newly originated credit held steady in the first quarter of 2026 for both mortgages and auto loans. Mortgage originations, measured as appearances of new mortgages on consumer credit reports and including both refinance and purchase originations,were largely steady with $530 billion newly originated in 2026Q1.
About 59,000 individuals had new foreclosures on their credit reports, a slight increase from the previous quarter.
There were $182 billion in new auto loans appearing on credit reports during the first quarter.
Aggregate limits on credit cards continued to rise, with a $60 billion (1.1%) uptick in the first quarter, to ~$5.5 trillion. Home equity lines of credit (HELOC) limits rose, albeit at a slightly slower pace, by $14 billion (1.4%), continuing an expansion in HELOCs that began in 2022.
The total balance of loans delinquent at least 30 days remained unchanged at 4.8% from the prior quarter after six quarters of steady increase. Still, the overall delinquency rate matched the highest level reported since 2017. Transition into early delinquency held steady for auto loans, but ticked down for credit cards, from 8.7% annually to 8.6%, and for mortgages from 3.9% to 3.8%.
“Aggregate household debt levels rose slightly, with modest increases in most debt types offsetting a seasonal decline in credit card balances,” said Daniel Mangrum, Research Economist at the New York Fed. “Delinquency transition rates were mostly steady, while student loan delinquencies are returning to pre-pandemic levels.”
More concerning is that the percentage of loan balances that are seriously delinquent and set to transition to default/discharge continues rising -student loan delinquency rate increased to 10.3% of balances 90+ days delinquent, up from the 9.6% observed in 2025Q4 -and while it hit a new post-covid high for student loans after the Biden moratorium ended last year, the credit card picture is most dire, with the percentage there on pace to surpass the financial crisis record in the next few quarters. As shown below, transition rates into serious delinquency were mostly unchanged for auto loans and credit cards, but increased slightly for mortgages from 1.4 % annually to 1.5%. The student loan delinquency rate increased to 10.3% of balances 90+ days delinquent, up from the 9.6% observed in Q4 2025.
About 124,000 consumers had a bankruptcy notation added to their credit reports in 2026Q1, a pace unchanged from the previous quarter. The percentage of consumers with a third-party collection account on their credit report worsened slightly to 5.0 percent
Taking a closer look at the army of defaulting "students", the WSJ writes that millions of borrowers are defaulting on their student loans,and they are nearly 40 years old on average.That is nearly 2½ years older than the profile of a student-loan defaulter before the pandemic. Borrowers 50 and older are now at higher risk of default than younger borrowers.
Source: ZeroHedge News
