Credit Card Debt Rises to $1.26 Trillion, Nears Record

Americans' credit card debt reached $1.26 trillion in the second quarter of 2026, increasing by about $21 billion from the previous quarter, according to new data from the Federal Reserve Bank of New York, Elizabeth Schulze reported for ABC News.

Americans' credit card balances are nearing a record high as households contend with elevated prices and borrowing costs.

Outstanding credit card balances are now just below the record level of about $1.28 trillion reached in the fourth quarter of 2025.

Strong consumer spending can contribute to higher credit card balances, while economists have also pointed to rising prices for essentials such as groceries and gasoline as factors behind increased borrowing.

Credit card delinquencies have also risen. The share of credit card balances that were at least 90 days delinquent has increased in recent years.

New York Fed researchers said many households remain vulnerable to delinquency because they live paycheck to paycheck and can be pushed behind by an unexpected financial shock.

However, researchers noted that the elevated delinquency rate partly reflects older outstanding debts rather than simply consumers falling behind on newly accumulated credit card charges.