US credit card debt reached $1.26 trillion in the second quarter of 2026, a $21 billion increase from the previous quarter, marking a 1.7% rise, according to data released by the Federal Reserve Bank of New York this week [1, 2, 3, 4, 5]. This figure is just below the all-time record of $1.28 trillion set in the fourth quarter of 2025 [1, 2, 3, 4, 5].
Credit card balances more than 90 days past due rose significantly from 7.6% in mid-2022 to 12.8% in early 2026 [1, 2, 3, 4, 5]. New York Fed researchers explained the increase is mostly due to older debts remaining on credit reports longer, while new delinquencies have stayed roughly stable for the past two years [1, 2, 3, 4]. The Fed noted one missed paycheck or unexpected expense could push many households into delinquency as many live paycheck to paycheck [2].
Despite the rise in credit card debt, total U.S. household debt slightly declined to $18.8 trillion in Q2 2026, mainly driven by a $74 billion drop in mortgage balances [2, 4, 5]. Auto loan debt hit a record $1.71 trillion, rising $28 billion in the quarter, while home equity lines of credit (HELOC) balances continued 17 quarters of growth, climbing $13 billion to $459 billion [2, 4, 5].
The average credit card annual percentage rate (APR) was 22.15% in May 2026, the highest in years, adding pressure on borrowers [4]. Around 175 million Americans hold credit cards, with roughly 60% carrying balances month to month, reflecting ongoing financial strain [3].
Experts say many Americans carry credit card debt to cover essential expenses like groceries, school supplies, and baby formula. Lucia Dunn, economics professor emerita at Ohio State University, said, "A lot of these are feeding your kids, going into stores, people buying their school supplies, the groceries, the baby formula, the diapers. I'm sure a lot of those people have to carry a balance because they are just simply strapped economically" [1]. LendingTree’s Matt Schulz noted the increase in credit card and HELOC debt shows consumers are stretching budgets amid persistent inflation [3].
Financial advisors recommend increasing monthly payments, monitoring credit scores, seeking credit counseling, or considering balance transfers or personal loans to manage rising debt [5]. Meanwhile, U.S. Senators John Fetterman, Cory Booker, and Tammy Baldwin introduced the Credit Card Fairness Act in January 2026 to cap late fees at $8 [4].
The New York Fed report on Q2 household debt data, published August 11–12, 2026, confirmed these figures and delinquency trends [1, 2, 3, 4, 5]. Economists and policymakers will continue monitoring new delinquencies on credit cards and auto loans in coming months [4].
