{"id":967967,"date":"2026-05-28T07:48:08","date_gmt":"2026-05-28T11:48:08","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/u-s-consumer-debt-hits-18-19-trillion-in-q1-2026\/"},"modified":"2026-05-28T07:48:08","modified_gmt":"2026-05-28T11:48:08","slug":"u-s-consumer-debt-hits-18-19-trillion-in-q1-2026","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/u-s-consumer-debt-hits-18-19-trillion-in-q1-2026\/","title":{"rendered":"U.S. Consumer Debt Hits $18.19 Trillion in Q1 2026"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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Subprime Borrower Activity Fuels Bankcard Growth; Delinquency Rates Improve for Most Loans, but Rise for Student Debt<\/p>\n

\n ATLANTA<\/span>, May 28, 2026<\/span> \/PRNewswire\/ — Equifax<\/a>\u00ae (NYSE: EFX) has released its\u00a0Market Pulse First <\/a>Quarter U.S. Consumer Credit Trends<\/a>, which includes U.S. national consumer credit data and trends through March 2026 sourced from Equifax proprietary data. Consumer debt balances reached an all-time high of $18.19 trillion in March, heavily influenced by an increase in subprime borrowers opening new bank cards and carrying higher balances. The data showed signs of stabilization in some delinquency rates, a deepening “K-shaped” credit landscape characterized by an increased reliance on subprime bankcards and rising student loan defaults, and strategic lender efforts to improve asset quality through higher write-off rates.<\/p>\n

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\n Increased Reliance on Credit Among Subprime Consumers <\/b>\n <\/p>\n

Outstanding balances in revolving credit, specifically bankcard, are up almost 4% year-over-year, which is outpacing the March 2026 inflation rate of 3.3%. This increase is largely fueled by a surge of subprime borrowers opening new bankcards. Overall, the number of new bankcard accounts grew by 8.1% year-over-year as of January 2026, with subprime originations specifically experiencing an 18.6% increase in new accounts over this 12-month period. Additionally, credit limits among this group increased 37.6% compared to the previous January.<\/p>\n

“We are seeing an expansion in the subprime market that underscores the widening gap of the K-shaped economy,” said Maria Urtubey, Equifax Advisor. “Lenders originating more bankcard accounts for consumers in subprime while also increasing total credit limits suggests that, for the lower economic tier, credit may have moved beyond a financial tool and may be becoming a necessity for managing the rising costs of living.”<\/p>\n

\n Fewer Student Loans Being Originated but Origination Amounts and Delinquency Rates Continues to Grow <\/b>\n <\/p>\n

While the number of new student loan accounts declined by more than 10% year-over-year as of January 2026, the dollar amount originated still increased by 4.7%, likely reflecting the rising costs of education.<\/p>\n

Existing student loan balances continue to decrease due to servicer adjustments for interest waivers and forbearance, as well as borrowers transitioning from the Saving on a Valuable Education (SAVE) Plan to other income-based repayment programs.<\/p>\n

Student loan delinquencies continued to trend upward as the 90+ days past due delinquency rate reached 17.01% in March. This increase marks the fourth consecutive month of student loan delinquency increases, although the rate remains more than 9% below the historic peak recorded in May 2025.<\/p>\n

“Historically, consumers have prioritized mortgage and auto payments over student loans,” said Urtubey. “However, as stricter enforcement measures are restarted, we may begin to see disruption in this ‘payment hierarchy’, potentially introducing stress into other credit categories.”<\/p>\n

\n Improving Delinquencies But Rising Write-Offs Suggest Normalization <\/b>\n <\/p>\n

Outside of student loans, most consumer credit indicators showed improving 60+ day delinquency rates month-over-month.<\/p>\n