Americans’ credit card debt surged to $1.26 trillion in the second quarter of this year, marking a $21 billion increase, according to recent data released by the Federal Reserve Bank of New York. The total outstanding credit card balances are now nearing the previous record of $1.28 trillion set in the fourth quarter of last year.
The rise in consumer spending, coupled with inflationary pressures on essential goods such as groceries and fuel, has been identified as key drivers behind the escalation in credit card debt. This trend has also led to a growing number of households falling behind on their card payments.
The percentage of credit card balances that were more than 90 days delinquent climbed from 7.6% to 12.8% between mid-2022 and early 2026. Experts attribute this increase in delinquency rates to existing outstanding debts rather than new charges.
In addition to credit card debt, Americans also saw an uptick in auto loan and home equity line of credit debt from April to June. However, student debt and mortgage debt experienced a decrease during the same period.
Overall, U.S. household debt now stands at $18.8 trillion, with auto loan debt reaching a record high of $1.71 trillion. The insights provided in the New York Fed report are based on a nationally representative sample derived from Equifax credit report data.
