Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure. Credit card balances are rising to near record highs, according to the Federal Reserve Bank of New York's new quarterly report on household debt and credit.
The report shows total household debt decreased by $13 billion in the second quarter of 2026, to $18.8 trillion. However, credit card balances rose by $21 billion to stand at $1.26 trillion — a 1.7% increase from the previous quarter and nearing last year's high of $1.28 trillion. "Delinquency rates across most products remained fairly stable," the New York Fed researchers wrote in a blog post.
However, the percentage of credit card balances in "late-stage delinquency," or more than 90 days past due, rose from 7.6% to 12.8% between the third quarter of 2022 and the first quarter of 2026. "Delinquency rates across most products have held steady over the past two years," said Joelle Scally, economic policy advisor at the New York Fed, in a statement. "Still, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we'll continue to monitor." Rising prices, including for groceries and gas, and high interest rates are putting more pressure on household budgets, economists say.
The Consumer Price Index (CPI) rose 3.4% for the 12 months ending July, slightly down from June's 3.5% annual increase. The energy index increased 14.7% for the 12 months ending July, and the food index increased 3% over the past year. As a result, many consumers are turning to their credit cards to cover everyday expenses, as one survey shows.
More than half of American consumers carry credit card balances to cover the rising cost of essential expenses, with 25% carrying these debts for six months or longer, according to a recent survey by Achieve, a digital personal finance platform. At the same time, credit card interest rates have been steadily climbing, with rates increasing from an average of about 15% in 2021 to nearly 21% today. The combination of higher rates and tighter budgets is leading to a dangerous debt spiral, according to Fed researchers, prompting concerns that "Americans are falling behind on their debt payments at rates not seen since the Great Recession." This embedded content is not available in your region.
If you're struggling to cover your minimum credit card payments, you're not alone. According to data from Bank of America, nearly a quarter of all households were living paycheck to paycheck last year. Add growing credit card payments to an already tight budget, and you could find yourself choosing between covering your living expenses and making your monthly credit card payment.
Extract — continue reading at the source.
