U.S. credit card debt nears record high at $1.26 trillion
Representational image. Collected.
U.S. credit card debt surged to $1.26 trillion in the second quarter of this year—an increase of $21 billion—bringing balances close to the record $1.28 trillion set late last year.
According to new data from the Federal Reserve Bank of New York, a combination of robust consumer spending and elevated costs for everyday essentials like food and fuel continues to push card balances upward.
Rising debt levels have made it increasingly difficult for many households to keep up with payments. Overdue balances have escalated noticeably: the portion of credit card debt delinquent by more than 90 days climbed from 7.6% in mid-2022 to 12.8% in early 2026.
New York Fed researchers noted during a press call that for households living paycheck to paycheck, a single unexpected expense can trigger a missed payment. However, they clarified that the recent uptick in severe delinquencies stems primarily from aged, unresolved debts rather than new defaults.
Key Trends: U.S. Household Debt Record stands at $18.8 trillion.
Auto Debt: Balances on auto loans hit an all-time high of $1.71 trillion.
Mixed Debt Shifts: While auto loan debt and home equity lines of credit expanded between April and June, both student debt and overall mortgage debt experienced declines.
Total Debt Burden: Cumulative U.S. household debt has reached $18.8 trillion.
U.S. Household Debt Breakdown
Debt Category: Outstanding Balance Mortgages $13.12 trillion, Auto Debt $1.71 trillion, Student Debt $1.65 trillion, Credit Card Debt $1.26 trillion, Home Equity Lines of Credit $459 billion. (Source ABC and MSNBC)
