Credit card balances are on the rise as of mid-2026, according to the New York Fed’s new quarterly report on household debt released Tuesday.
Balances rose $21 billion in the second quarter to a total of $1.26 trillion, close to last year’s all-time high of $1.28 trillion. The total increased 1.7% from the previous quarter.
New York Fed researchers said in a corresponding blog post that the percentage of credit card balances that are “late delinquent,” or more than 90 days past due, rose to 12.8% from 7.6% in the second quarter, “raising concerns that Americans are falling behind on their debt payments at a rate not seen since the Great Recession.”
But researchers at the New York Fed said in a press conference Tuesday that “this is a lagging indicator and reflects past amortized debt remaining on credit reports.”
At the same time, new credit card delinquencies have leveled off, but “remain high and we will continue to monitor this trend,” New York Fed researchers found, with 6.97% of balances going into delinquency over the past year.
“For us, it reflects this K-shaped economy,” the New York Fed researchers said. “There are a lot of families who are able to live up to their paychecks.”
Approximately 175 million Americans own a credit card. Although some people pay their balances in full each month, about 60% have revolving debt, making them more financially vulnerable, according to the New York Fed.
“The increase in debt, including credit card debt, HELOC debt, and other personal loans, is a clear sign that people are looking for ways to stretch their budgets in the face of stubborn inflation,” said Matt Schultz, chief credit analyst at LendingTree. Other reports show that home equity lines of credit (HELOCs) and home equity loans accounted for a larger share of borrowing this year.
Another report from debt management firm Achieve found that more than half of consumers, 55%, carry credit card balances to cover essential expenses.
“Short-term debt often begins as a temporary solution to fill a household budget shortfall,” Brad Stroh, co-founder and co-CEO of Achieve, said in a statement. However, he said, “With rising costs of living and compounding interest burdens, these debts can quickly put ongoing pressure on household balance sheets and household budgets.”
In a June survey of 2,000 consumers conducted by Achieve, 56% of borrowers said it would take more than six months to pay off all their credit card debt.
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