US Credit Card Debt Tops $1.26 Trillion, Serious Delinquency Rate Jumps to 12.8%

According to the Federal Reserve Bank of New York's quarterly household debt report, total US credit card debt continued to climb as of mid-2026. In the second quarter, credit card balances increased by US$21 billion to US$1.26 trillion, up 1.7% from the previous quarter, approaching the historical high of US$1.28 trillion set in 2025.

The report showed that the proportion of credit card balances that were 'seriously delinquent' (overdue by more than 90 days) jumped from 7.6% to 12.8%. Meanwhile, the new credit card default rate remained stable but elevated, with 6.97% of balances transitioning to default over the past year.

The data also showed that approximately 175 million Americans hold credit cards, and about 60% of cardholders carry revolving debt, facing higher financial vulnerability. In addition, home equity lines of credit (HELOC) and home equity loans accounted for a larger share of borrowing in 2026. Another survey of 2,000 consumers found that 55% of consumers use credit cards to pay for basic living expenses, and 56% of borrowers said they would need six months or longer to pay off all their credit card debt.