The outstanding debt of Israeli households rose by about NIS 22 billion, or 2.4%, in the second quarter of 2026 to approximately NIS 935 billion, according to Bank of Israel data released on September 24.
The standout figure was nonhousing debt. That component increased 3.6% during the quarter to about NIS 260 billion, while housing debt rose 1.9% to around NIS 675 billion.
Where debt is growing fastest
According to the Bank of Israel, the annual growth rate of nonhousing debt accelerated to about 10%, up from 5.7% in the previous quarter. The increase appeared across the main lenders, including banks, credit card companies and institutional investors.
Housing debt continued to grow at an annual rate of about 7%. Around NIS 13 billion was added to the housing debt balance during the quarter, largely because of new mortgage borrowing from banks.
What the figures mean for a household
The data do not mean that every Israeli family owes more money because they are aggregate balances for all households. They do show that the public is using more credit, particularly nonmortgage credit, at a time when financing costs remain material.
For an individual household, the more relevant questions are the interest rate on its debt, whether that rate can change, the repayment period and the share of monthly income devoted to repayments. Rising national debt is not by itself proof of financial distress, but it is a reason to watch credit quality and repayment capacity.
The wider debt picture
Total nonfinancial private sector debt, combining households and businesses, increased 3.6% during the quarter to about NIS 2.6 trillion. Business sector debt rose 4.2% to around NIS 1.7 trillion, mainly because of net borrowing concentrated in bank credit.
The next useful indicators include payment arrears, terms on new credit and the pace of mortgage and loan originations. Those figures can help distinguish debt growth associated with economic activity from borrowing that is placing greater strain on households.
