Americans' credit card debt reached $1.26 trillion in the second quarter of 2026, increasing by $21 billion, according to new data from the Federal Reserve Bank of New York. The total is just below the all-time record of $1.28 trillion set in the fourth quarter of last year. Strong consumer spending and rising prices for essentials like groceries and gas are key factors driving the increase. The percentage of credit card balances more than 90 days delinquent rose from 7.6% to 12.8% from mid-2022 through early 2026. New York Fed researchers noted that many households live paycheck to paycheck, making them vulnerable to unexpected financial setbacks. However, they also pointed out that higher delinquency rates may reflect old outstanding debts rather than new charges. Auto loan and home equity line borrowing also increased during the quarter, while student and mortgage debt decreased. Total U.S. household debt stands at $18.8 trillion, with auto loan debt hitting a record high of $1.71 trillion.

The New York Fed's report is based on an anonymized, nationally representative sample drawn from Equifax credit report data. The findings highlight ongoing financial pressures on American consumers amid elevated spending and inflation. Researchers emphasized that while delinquency rates remain elevated, the underlying causes are complex, involving both current economic conditions and legacy debt burdens.

Overall, the data underscores persistent challenges in household finances, particularly for those reliant on credit cards to manage daily expenses. As prices continue to climb and wage growth lags behind inflation, many consumers are finding it difficult to reduce their credit card balances, leading to increased payment difficulties.