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Understanding U.S. Consumer Debt in Q3 2026

In the third quarter of 2026, consumer debt in the United States surged to an astonishing $18.56 trillion, marking a 2.9% increase compared to the same period last year. This rise is largely attributed to the ongoing growth in mortgage debt and home equity lines of credit (HELOC). According to the recent Equifax Market Pulse report, outstanding first mortgage loans alone reached $13.08 trillion as of September 2026.

Key Insights from the Report

The Equifax data provides a comprehensive look at the shifts in consumer borrowing patterns, revealing several core trends:
1. Mortgage Dominance: Mortgages continue to be the largest contributor to consumer debt, cementing their role as a foundational element of household finance. The substantial majority of Americans rely on mortgage products as their primary form of debt.
2. HELOC Expansion: Home equity lines of credit saw remarkable growth, with balances climbing to $461.9 billion—representing a robust 13.3% increase year-over-year. Homeowners are increasingly utilizing these credit lines to leverage their home equity, which provides them with a financial cushion in challenging economic times.
3. Stable Non-Mortgage Write-Offs: Interestingly, non-mortgage write-offs amounted to $104.9 billion year-to-date, which is slightly higher than the $104.4 billion from the previous year. Despite the substantial debt levels, this stabilization points towards a resilience among consumers amidst a fluctuating economy.

Trends in Non-Mortgage Debt

The nature of debt among consumers has also transformed, showing varied growth across asset classes. Non-mortgage debt as of September 2026 totaled $4.79 trillion, which includes:

• - Auto Loans: Rising to $1.745 trillion, this segment grew by 3.7% year-over-year.
• - Student Loans: Though challenging, this category saw a decline to $1.287 trillion, down by 4.0% from the previous year.
• - Bankcards: With bankcard balances increasing by 3.9% to $1.125 trillion, average utilization rates dipped slightly to 20.3%.

Analyzing Delinquencies and Repayment Patterns

Despite the overall growth in consumer debt, there's a noticeable shift in delinquencies. Severe delinquency rates, particularly in revolving credit categories such as bankcards, have experienced a decrease. From September 2025 to September 2026, severe delinquency rates fell by 9 basis points to 2.74% for bankcards, and private label cards dropped by 40 basis points to 3.85%.

Emmaline Aliff, Advisory Leader at Equifax, noted this resilience among the consumer segments. Despite the economic pressures and rising borrowing costs, many are effectively managing their repayment schedules. However, she underscored the financial strain on lower-income households that might still be struggling amid elevated costs of living.

The Future of Consumer Borrowing

The trajectory of consumer debt is indicative of larger economic trends and behaviors. While the increase in mortgage-related debt provides a sense of stability, the continued rise in HELOCs suggests that homeowners are seeking additional financial resources, potentially as a reaction to inflation and market uncertainty.

With the changing landscape of consumer borrowing, it’s essential for individuals to remain informed about their financial positions and the broader implications of rising debt levels. As we move forward, monitoring these trends will be crucial for understanding economic health and consumer confidence across the nation.

Equifax has been dedicated to tracking consumer credit trends for over two decades, providing insights and analytics that support sound financial decision-making for many stakeholders in the economy. This latest report serves to highlight both the growth in debt as well as the complexities tied to consumer behavior in today's financial landscape.