US Consumer Debt Hits $18.56 Trillion as Home Equity Borrowing Surges

November 12, 2026 | By Semahegn Nigatu

US consumer debt reached a record 18.56 trillion US dollars in September 2026, driven partly by rising mortgage obligations and increased borrowing against home equity, according to credit reporting company Equifax.

Total outstanding consumer debt increased 2.9 percent from a year earlier, while balances on home equity lines of credit (HELOCs) rose 13.3 percent to 461.9 billion US dollars, up from 407.7 billion US dollars in September 2025.

The increase in home equity borrowing reflects a growing use of accumulated property wealth to access credit. HELOC balances also rose 1.7 percent from August, when they stood at 454.2 billion US dollars, and accounted for 3.4 percent of total outstanding mortgage debt.

Mortgage obligations remain the largest component of US household debt, while non-mortgage borrowing has shown comparatively stable credit performance, according to Equifax's third-quarter Market Pulse Consumer Credit Trends report.

Non-mortgage consumer debt reached 4.79 trillion US dollars in September, comprising 1.745 trillion US dollars in auto loans, 1.287 trillion US dollars in student loans and 1.126 trillion US dollars in bankcard balances.

Despite the increase in outstanding borrowing, year-to-date non-mortgage debt write-offs remained largely unchanged at 104.9 billion US dollars, compared with 104.4 billion US dollars during the same period a year earlier.

Severe delinquency rates, covering payments more than 60 days overdue, also declined across some revolving credit categories. Bankcard delinquencies fell by nine basis points to 2.74 percent from September 2025, while private-label card delinquencies dropped by 40 basis points to 3.85 percent.

Auto loan and lease balances increased 3.7 percent year-on-year to 1.745 trillion US dollars, although severe delinquency rates declined by seven basis points to 1.50 percent.

Bankcard balances rose 3.9 percent to approximately 1.13 trillion US dollars, while average credit utilisation edged down to 20.3 percent. Student loan balances moved in the opposite direction, declining four percent year-on-year to approximately 1.29 trillion US dollars.

Emmaline Aliff, advisory leader at Equifax, said homeowners were increasingly using accumulated home equity, with double-digit annual growth in HELOC balances.

She cautioned, however, that the relatively stable performance of consumer credit portfolios concealed financial pressure among lower-income households, particularly amid elevated borrowing costs and persistent inflation.

The figures point to contrasting developments in the US credit market: expanding household borrowing, particularly through mortgage-related products, alongside relatively stable non-mortgage write-offs and easing delinquency rates in several categories.

Source: FSX Business News