Credit Karma released a new snapshot of consumer debt for the first half of 2026, based on data from over 107.3 million members whose combined debt exceeds $10.6 trillion. While the study does not represent every American, it offers a clear picture of how credit‑card, mortgage, student‑loan, medical‑loan, auto‑lease and auto‑loan balances are shifting.
Overall debt climbs
From April through June 2026, the average overall debt per member rose to $60,112, a 2.38% increase compared with the October‑December 2025 period. Three of the four major debt categories posted growth, with student‑loan debt leading the way.
Student loans drive the surge
Average student‑loan balances jumped 6.30% in the first half of the year, reaching $36,217 per borrower—up from $34,072 in Q4 2025. Sub‑prime borrowers saw the steepest rise, with a 9.76% increase. Generation Z accounted for much of this growth, posting a 10.47% rise in student‑loan balances between Q4 2025 and Q2 2026.
Credit‑card and auto debt trends
Credit‑card debt held by roughly 102 million members totaled about $615.6 billion, up 4.5% from the previous quarter. However, the average credit‑card balance fell 2.30% to $7,685, marking the only category with a decline in the first half of the year.
Auto‑loan debt remained robust. Nearly 74 million members with open auto loans carried more than $1 trillion in balances, with the average loan amount rising 2.14% to $26,359.
Mortgage balances inch upward
Approximately 40 million members with mortgages held a combined $8.09 trillion in debt. The average mortgage balance grew modestly by 0.96% to $274,987, the smallest increase among the four major categories.
Credit scores improve slightly
The average VantageScore 3.0 for members with debt increased three points, reaching 676 in the first half of 2026, up from 673 in Q4 2025. Every generation except the Silent generation saw score gains.
Collections and credit inquiries
Among members with accounts in collections, the average number of open collection accounts stayed relatively flat, with minor upticks among younger generations. Credit‑inquiry activity also softened, indicating that many Americans are pulling back on new credit applications as they manage higher debt loads.
What the data means for families
For families striving to protect their financial future, the report underscores the importance of prudent borrowing and diligent budgeting. The rise in student‑loan balances, especially among younger borrowers, highlights the need for careful consideration of educational financing and the value of parental guidance in financial decisions.
Methodology note
All data were aggregated from Credit Karma members’ TransUnion credit reports as of July 13 2026 and reflect activity within the prior 90 days. The analysis captures only those with open accounts in collections, not the broader population.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
