Inflation-Adjusted Household Debt Falls in Q2

By: M. Scott Morris
Published: August 18th, 2026

WalletHub's inflation-adjusted analysis revealed that while U.S. households owed nearly a record amount in absolute terms at the end of Q2 2026 ($18.77 trillion), the total is still around $1.4 trillion below the record from 2008 when adjusted for inflation.

"It seems like we've seen household debt hit record high after record high with only adjustments for inflation saving us from setting an overall record. The second quarter of 2026 was a bit of an exception in that regard with debt actually falling in absolute terms and consumers proving they are in better shape than most people think," said John Kiernan, WalletHub editor. "For one thing, household debt is well below the record when you adjust for inflation. Plus, debt levels aren't alarming when you compare them to deposits and assets. Those ratios are healthy compared to historical levels. The situation could be much better, of course, but many prognosticators have been expecting much worse."

Key findings (inflation adjusted)

• Q2 results: Total household debt decreased by $226 billion during Q2 2026 in contrast to an increase of $29 billion in Q2 2025.
• Household average: The average household owed a total of $155,274 at the end of Q2 2026, which is $17,066 below the all-time high.
• Total debt-to-deposits ratio: The ratio of total household debt to deposits indicates consumers are in good shape because it's still below pre-Covid levels and roughly 49% lower than its early-2000s peak.
• Total debt-to-assets: The ratio between total household debt and assets, at 9.07%, continues to be at a healthy level.

For the full report, click here.

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