A new report by The Kaplan Group finds that American household debt remains near a record high. Total balances reached $18.77 trillion in Q2 2026, an increase of $382.5 billion from a year earlier and $567.5 billion since the company’s 2025 follow-up study.
Although debt edged down by $13.5 billion from the previous quarter, the longer-term trend remains upward, with credit cards, auto loans, mortgages, and student debt continuing to place pressure on household finances.
Key Takeaways
- Total household debt is approximately 148% higher than in 2003. Student loan debt has experienced the largest increase, reaching about 6.7 times its 2003 level.
- The District of Columbia has the highest average debt at $102,400 per person with a credit report, followed by Colorado at $92,690 and California at $87,850.
- West Virginia has the lowest average debt at $37,850, followed by Mississippi at $41,450 and Arkansas at $43,090.
Debt Has Grown Much Faster Than The Price Level
In Q2 2003, household debt totaled $7.38 trillion. By Q2 2026, it had risen by $11.39 trillion, or 154.2%. Over the same period, the CPI price level increased 81.9%. After adjusting for inflation, household debt was still 39.8% higher than it was 23 years earlier.
Auto loan balances reached a new all-time high in the second quarter of 2026, while mortgage and student loan balances remained close to their historical peaks. Although total household debt temporarily declined following the 2008 financial crisis, it has grown rapidly since 2013. By Q2 2026, household debt reached $18.77 trillion. This is nearly 40% higher than in Q2 2003 after adjusting for inflation.
Since Q1 2025, mortgage balances have increased by 2.4%, auto loan balances by 4.3%, and student loan balances by 1.2%. Credit card debt grew more quickly, rising 6.9%, although its long-term growth since 2003 has still been roughly in line with inflation. Credit card balances were below their 2003 average in nearly every quarter from 2012 through early 2015, before beginning a sustained recovery.
Overall, credit card debt has grown much more slowly than student, auto, and mortgage debt. Student loan debt has experienced the most dramatic long-term increase, reaching approximately 6.7 times its 2003 level by 2026. Student loan balances have largely stabilized since 2021, peaking at $1.664 trillion in Q4 2025 before declining slightly to $1.651 trillion in Q2 2026. Despite this recent stabilization, student debt remains exceptionally high compared with its 2003 level.
Mortgages Still Dominate Household Balance Sheets
Mortgage balances totaled $13.117 trillion and represented 69.9% of all household debt. Auto loans stood at $1.713 trillion, student loans at $1.651 trillion, credit-card balances at $1.263 trillion, and home-equity revolving balances at $0.459 trillion.
Where Borrowers Carry The Most Debt
The national average balance per borrower reached $63,200 in Q4 2025, up 92.4% from $32,840 in Q4 2003. After adjusting both endpoints for inflation, the increase was 9.5%.
The District of Columbia had the highest average debt in Q4 2025 at $102,400 per person with a credit report. Colorado followed at $92,690, while California, Washington, and Hawaii each averaged more than $83,000. High mortgage balances were the main reason these areas ranked at the top.
North Dakota experienced the largest increase between 2003 and 2025, with average debt rising by 166%. It was followed by the District of Columbia at 148%, Montana at 139%, Texas at 137%, and Idaho at 137%. These figures show that the fastest debt growth was not limited to the states with the highest overall balances.
Delinquency Pressure Is Concentrated In Credit Cards And Student Loans
In Q2 2026, 12.92% of credit-card balances were at least 90 days delinquent. The comparable rates were 10.60% for student loans and 5.49% for auto loans. Across all debt types, 3.31% of balances were seriously delinquent.
What The Latest Numbers Mean
The Q2 decline is not a turnaround. Balances are still higher than a year ago, housing debt still makes up about seven-tenths of the total, and serious delinquency is still high on credit cards and student loans. Households are carrying much more debt than in the early 2000s, even after adjusting for inflation.
Where that debt sits matters more than the total. Mortgages are backed by a home, and only about 1% of that balance is seriously past due. The trouble is in the debt that isn’t backed by anything: 12.92% of credit-card balances and 10.60% of student-loan balances are 90 days or more past due, against 3.31% across all debt. Card balances also grew 6.9% since Q1 2025. That is nearly three times the pace of mortgages.
For creditors, the takeaway is to treat the quarterly dip as noise. Unsecured accounts get harder and more expensive to collect the longer they sit.
Methodology
National figures come from the Federal Reserve Bank of New York Quarterly Report on Household Debt and Credit supplied for Q2 2026. State figures use the New York Fed State Level Household Debt Statistics, which report average balances per person with a credit report through Q4 2025. Inflation adjustment uses the CPI-U. Q2 comparisons use the average CPI for April through June; Q4 state comparisons use December CPI values. Rankings include the 50 states and the District of Columbia where current data are available. Figures are rounded.
Sources:
Federal Reserve Bank of New York Consumer Credit Panel/Equifax
U.S. Bureau of Labor Statistics CPI-U
Kaplan Group reports for framing and comparison.