Americans are leaning harder on their credit cards. New data from the Federal Reserve Bank of New York shows credit card debt reached $1.26 trillion in the second quarter, a $21 billion jump from the previous quarter. That leaves outstanding balances just shy of the $1.28 trillion record set late last year.
What’s behind the rise? Strong consumer spending plays a role, but so do higher prices on everyday items like groceries and gas. For many households, the margin between making ends meet and falling behind is razor thin. “There are a lot of households who live paycheck to paycheck, and it just needs one thing to happen to them that could lead to a delinquency,” New York Fed researchers said on a call with reporters Tuesday.
That fragility is reflected in the numbers. The share of credit card balances more than 90 days delinquent climbed from 7.6% in mid-2022 to 12.8% through early 2026. Yet researchers caution that the higher delinquency rate stems largely from old debts, not from people skipping out on new charges.
The broader picture is mixed. Auto loan debt and home equity lines of credit grew between April and June, while student and mortgage debt fell. Total household debt now sits at $18.8 trillion. Auto loans, at $1.71 trillion, have reached an all-time high.
The Federal Reserve Bank of New York based its findings on an anonymized, nationally representative sampling of Equifax credit report data.
