U.S. Credit Card Debt Rises to $1.26 Trillion, Nearing Record High
Americans’ credit card debt reached $1.26 trillion in the second quarter, rising by $21 billion and sitting just shy of the $1.28 trillion all-time record set late last year, according to data released on Tuesday by the Federal Reserve Bank of New York.
Total U.S. household debt climbed to $18.8 trillion during the same period. The numbers underline an escalating fiscal squeeze for consumers grappling with persistent inflation and elevated borrowing costs. Outstanding credit card balances are now approaching the previous peak established in the fourth quarter, driven by higher prices for daily essentials like groceries and gas.
Delinquency Pressures and Household Strain
Financial distress is spreading across multiple demographics, reflected in rising late-stage payment misses. The percentage of credit card balances more than 90 days delinquent rose from 7.6% to 12.8% between mid-2022 and early 2026. New York Fed researchers noted on a call with reporters that many households live paycheck to paycheck, leaving them vulnerable to unexpected financial shocks.
The spike in serious delinquencies stems partly from legacy balances rather than a sudden wave of missed payments on newly issued charges.
Broadening Debt Categories Across the Balance Sheet
The New York Fed report, drawn from an anonymized sample of Equifax credit report data, shows credit cards are not the only liability scaling upward. Auto loan debt notched a new record high at $1.71 trillion, while home equity lines of credit increased to $459 billion. Conversely, student loan debt and mortgage debt saw slight decreases from April through June, landing at $1.65 trillion and $13.12 trillion respectively.
Car owners face mounting pressure as vehicle valuations shift, leaving a segment of borrowers underwater on their loans.