Equifax has indicated that US consumer debt climbed to an unprecedented $18.19 trillion by March 2026, according to the latest insights from Equifax’s Market Pulse First Quarter U.S. Consumer Credit Trends report. This figure marks a 2.8% increase from the previous year, highlighting sustained borrowing amid economic pressures.
Equifax has pointed out that while overall balances stabilized month-over-month, the data reveals a nuanced picture: modest growth in key categories like mortgages and auto loans, alongside notable shifts in consumer behavior and credit risk.
According to insights from Equifax, a primary driver of the uptick has been revolving credit, particularly bankcards.
Outstanding balances in this segment rose nearly 4% year-over-year, exceeding the March inflation rate of 3.3%.
New bankcard accounts increased by 8.1% overall through January 2026, but the surge was especially pronounced among subprime borrowers, with new originations jumping 18.6% and credit limits expanding by 37.6%.
This trend points to greater reliance on credit cards among lower-credit-score consumers to cover everyday expenses.
Maria Urtubey, an Equifax advisor, noted that this expansion in subprime lending underscores a widening “K-shaped” economy.
For many in lower economic tiers, credit appears to have evolved from a convenience into a critical tool for navigating higher living costs.
Lenders have responded by extending more accounts and higher limits to this group, potentially signaling both opportunity and heightened risk.
In contrast, the student loan landscape shows mixed signals. The number of new student loan accounts fell more than 10% year-over-year as of January, yet the total dollar volume originated grew by 4.7%, reflecting escalating education costs.
Existing balances have declined slightly due to adjustments, interest waivers, forbearance, and shifts in repayment plans like the SAVE program.
However, delinquency rates for student loans continued to climb, reaching 17.01% for accounts 90+ days past due in March—the fourth straight monthly increase.
While still below the May 2025 peak, this rise raises concerns, especially as enforcement tightens.
Urtubey highlighted that consumers have traditionally prioritized mortgage and auto payments, but renewed collection efforts could disrupt this pattern and spill over into other debt categories.
Delinquency trends outside of student loans offer some reassurance.
Most categories posted improvements in 60+ day past-due rates compared to the prior year: unsecured personal loans eased from 3.49% to 3.18%, bankcards from 3.09% to 2.97%, and auto loans from 1.51% to 1.49%.
Yet this positive movement coincided with rising write-off rates, as lenders cleared older delinquent accounts—bankcard write-offs edged up 0.9 basis points, while auto loans and leases increased by 27.5 basis points.
These actions suggest proactive portfolio management and a return toward normalized risk levels heading into the rest of 2026.
Breaking down the totals, first mortgages stood at approximately $12.86 trillion in March (up modestly year-over-year), home equity lines of credit (HELOCs) reached $431 billion (up 13%), auto loans hit $1.599 trillion, bankcards $1.085 trillion, and student loans $1.302 trillion (slightly down). Equifax‘s data paints a picture of resilience amid divergence. Subprime consumers are leaning more heavily on credit, delinquencies are stabilizing in most areas, and lenders are cleaning up balance sheets.
