US Household Debt Jumps $166 Billion as Quarterly Increase Surges 131% From 2025

U.S. household debt increased by $166 billion in the third quarter of 2026, a jump 131% larger than the increase recorded during the same period last year, according to WalletHub's latest Household Debt Report.

The increase brought total household debt to approximately $19.1 trillion, with mortgages accounting for most of the quarterly growth. The average household owed $157,899 at the end of September, up from $156,664 in the previous quarter.

WalletHub's analysis uses New York Federal Reserve data and adjusts historical figures for inflation using the September 2026 Consumer Price Index. Although household debt reached a record in nominal dollars, WalletHub found that the total remained roughly $1.2 trillion below its inflation-adjusted high. Average debt per household was also $15,984 below its historical peak after accounting for inflation.

The 131% figure describes the acceleration in the quarterly increase, rather than the growth of the overall debt balance. Households added approximately $166.25 billion during the third quarter of 2026, compared with $71.96 billion in the third quarter of 2025, according to the report's detailed figures.

Mortgage balances drove the increase, rising approximately $139.64 billion, or about 84% of the overall net gain. That mortgage increase was 185% larger than the rise recorded in the same quarter a year earlier.

Total mortgage debt reached approximately $13.37 trillion, remaining about $1.46 trillion below its inflation-adjusted record. Mortgage debt averaged $110,535 per household, according to WalletHub.

Balances on home equity lines of credit also increased by roughly $18 billion. It was the fifth consecutive year in which those balances rose during the third quarter, adding another source of growth in borrowing tied to housing.

Auto loans moved higher as well, with total auto debt increasing by approximately $6 billion, reversing the roughly $12 billion decline recorded during the third quarter of 2025. Outstanding balances reached approximately $1.73 trillion, about $43 billion below their inflation-adjusted record.

Average auto loan debt stood at $14,331 per household, just $662 below the peak recorded in 2020. The figure represents a household average across the report's calculation, rather than the typical balance owed by an individual car borrower.

Student loans moved in the opposite direction, providing a partial offset to increases elsewhere. Outstanding student debt declined by approximately $10 billion, compared with a roughly $4 billion increase during the same period last year. Average student debt was $13,684 per household.

Credit card balances reached approximately $1.29 trillion, or $10,620 per household. Both figures remained below their inflation-adjusted records, by approximately $103 billion and $1,265, respectively.

Despite the faster quarterly debt accumulation, WalletHub's broader measures showed household finances remained stronger than several historical benchmarks. The debt-to-deposits ratio stood at approximately 97%, below its pre-pandemic level and roughly 49% below its early-2000s peak.

The report also put the debt-to-assets ratio at 8.7%, up from 8.62% in the previous quarter. WalletHub described the latest ratio as 29% better than the historical average, while the debt-to-deposits measure was 25% better than its historical average.