U.S. Consumer Debt Delinquency Hits 3% in Q1 2026, Highest Since 2020

1 articles · Updated · The San Diego Union-Tribune · May 20

U.S. consumer debt that was 90 days or more past due rose to 3% in the first quarter, the highest level since early 2020 and a sign more households are struggling to pay on time.
That increase still looks manageable by longer-term standards: the rate remains below the 3.7% average since 2003 and far under the 8.6% peak reached in 2010 after the financial crisis.
Mortgage stress also worsened, with 1.1% of U.S. home-loan balances delinquent—the highest since 2018's second quarter—though still below the 2.6% long-run norm.
State data showed uneven pressure: California's overall delinquency rate was 2.1%, while Texas reached 4.2% and Florida stood at 3.9%, near its recent high.
Borrowing growth slowed alongside the payment strain, with U.S. consumer debt per capita at $63,545, up 2% from a year earlier versus a 4% average annual gain over the past six years.

With delinquencies rising but below crisis levels, is the U.S. economy headed for a soft landing or teetering on a cliff's edge?

Could an oil price shock from Middle East tensions be the final push that tips financially stressed American households into a full-blown recession?