Late bills are piling up in California – and across the nation.
My trusty spreadsheet’s review of the Federal Reserve Bank of New York’s second-quarter study of consumers’ credit files found a growing inability to make timely debt payments. The data tracks debts – including mortgages, credit cards, auto and student loans – in 11 big states and the nation going back to 2003. These statistics only consider individuals with credit histories — roughly 90% of the adult population.
By comparing loan totals and delinquency rates, you see that the typical Californian has $1,900 in debt that is 90 days or more past due at mid-year 2026. This is the highest level since the first quarter of 2015. And this measure of tardiness is up 14% over the past year.
Before you shout “Recession!” please note this yardstick of financial stress is 28% below its 23-year average. Plus, it’s 82% lower than the $10,480 debt peak in the second quarter of 2009, in the middle of the Great Recession. Yes, it was that bad for the economy in those dark days.
Today’s business climate is nowhere near as bleak. However, an actual war, trade wars, inflation, and minimal hiring – to name a few challenges – overstretched numerous household budgets. So, take rising delinquency as an early warning sign of economic stress, with one caveat: A chunk of the recent surge in late bills can be linked to the end of repayment waivers for many student loans.
Nationally speaking
Good news! Californians have fewer bill troubles than other Americans, by this math. That’s a noteworthy economic accomplishment for a state known for its often suffocating cost of living.
The typical American’s unpaid debts run $2,100 per person – 10% more than a Golden Stater. It’s the highest since the first quarter of 2014 and up 10% year over year. Worse, this level of late payment is 15% above average.
Again, it’s not crisis-level, running 52% below the $4,350 peak of the 2010s first quarter.
And California’s economic arch-rivals have bill problems, too.
Texas tardiness runs $2,753 per person, the highest in these records dating to 2003. It’s up 17% over the past year and 79% above average. For those who don’t remember, Texas was only mildly hit by the Great Recession.
And a typical Floridian’s late bills total $2,644, the highest since the first quarter of 2015 and up 3% year over year. Yet this is 12% below average and 78% below $9,521 peak of 2010’s first quarter.
Big borrowings
Californians borrow a lot, largely because of the large mortgages required to buy a home. But they’ve been more cautious about their debt in recent years compared with many Americans.
The typical Californian owed $87,000 in the second quarter. That’s down 1% in a year and a switch from adding 3% to the debt pile on average in the previous six years.
Contrast that to the typical American’s $63,500 debt per capita, which is 28% less than the Golden State.
But the growth in U.S. consumer borrowing has cooled, up only 1% in a year – far below the 4% annual average growth in debt in 2019-25.
Texans pulled back, too. Their $60,100 per-person debt is up only 0.3% in a year, compared with 5% growth in 2019-25. Florida? $62,800 per person, up 1% in a year vs. the previous 5% pace.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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