Credit card debt climbs to a record $1.29T, New York Fed research finds

Americans’ credit card debt reached a record $1.29 trillion in the third quarter of 2026, increasing $22 billion over the previous quarter and 4.2% from a year earlier, according to New York Fed figures. Total household debt, including mortgages, auto loans and student loans, also hit a record: $19.1 trillion, up $334 billion in the quarter. TransUnion puts the average credit card balance at $6,678 per consumer, 2.4% higher than a year ago, while the number of people with cards rose to 178 million from 174.8 million.

The growth reflects mounting pressure on household budgets, as persistent inflation and rising borrowing costs make essentials harder to afford, particularly for lower-income households whose wages have lagged price increases. Credit cards remain readily available but costly, with new offers averaging about 24% interest. New York Fed researchers say more cards have gone to borrowers with lower incomes and credit scores, and those accounts are showing greater distress. Issuers eased lending standards during the pandemic, followed by rising delinquencies. Although debt growth has slowed, consumer finance experts warn that years of higher prices and interest rates have already strained household finances.