Key facts
- Serious credit card delinquencies among Americans aged 70 and older reached 6.3% in Q2 2026, the highest since Q3 2011.
- Credit card balances across all ages increased by $21 billion, or 1.7%, in the second quarter.
- Home equity lines of credit (HELOCs) rose $13 billion in the second quarter to $459 billion.
- Reverse mortgages, including HECMs, are available to homeowners aged 62 and older.
- HECM borrowers must consult with a HUD-approved counselor before proceeding.
Serious credit card delinquencies among older Americans have reached a level not seen in 15 years, according to the Federal Reserve Bank of New York’s second-quarter 2026 Quarterly Report on Household Debt and Credit. The rate at which credit card balances transition into serious delinquency — defined as 90 or more days past due — has climbed sharply for consumers ages 70 and older.
While delinquency rates across all ages were relatively unchanged in the second quarter, for borrowers 70 and older, the rate increased by 0.3 percentage points, reaching 6.3%, the highest level since the third quarter of 2011. Across all age demographics, credit card balances increased quarterly by $21 billion, or 1.7%, with total non-housing debt rising by $48 billion. At the end of June, U.S. household debt stood at $18.8 trillion.
For homeowners in their 60s and 70s, housing wealth remains a significant component of household debt, with home equity lines of credit (HELOCs) continuing to expand. HELOC balances rose $13 billion in the second quarter to $459 billion, marking the 17th consecutive quarterly increase. Mortgage balances reported on consumers’ credit reports declined by $74 billion during the quarter to $13.1 trillion, though the New York Fed cautioned this was primarily due to servicer transfers.
Senior homeowners struggling with credit card debt may consider using their home equity. Reverse mortgages, such as federally insured Home Equity Conversion Mortgages (HECMs), are available to homeowners aged 62 and older who meet program requirements. Unlike traditional mortgages, HECMs do not require monthly payments, though borrowers must cover property taxes, homeowners insurance, and home maintenance. Experts advise comparing reverse mortgages with alternatives and understanding the long-term impact on home equity. HECM borrowers must consult with a Department of Housing and Urban Development (HUD)-approved counselor.
Dan Hultquist of Movement Mortgage and REVERSE plus noted that borrowers can make voluntary payments on their HECM loan. With the popular line of credit option, voluntary prepayments can restore borrowing capacity, increasing liquidity as the loan balance decreases, equity rises, and the available line of credit grows. Hultquist stated that unlike many traditional home equity lines, the HECM line of credit cannot be frozen or reduced due to declining home values, provided borrower obligations are met.