Credit Card Debt Creeps to Near Record High as Financial Stress Eases Elsewhere

Credit card balances have climbed back to 98% of last year’s record high. 

The Federal Reserve Bank of New York’s latest household debt report shows overall borrowing is easing for the first time in months, with one stubborn, rising problem. 

Credit card balances are now up to $1.26 trillion, about 1.6% shy of the record-high $1.28 trillion the Fed reported at the end of last year. 

Joelle Scally, Economic Policy Advisor at the New York Fed, commented on the findings, “Delinquency rates across most products have held steady over the past two years.” 

But when it comes to delinquency rates for credit cards? They “remain at elevated levels, a trend we’ll continue to monitor,” Scally said. 

Inflation, interest, and rising balances

It’s a pattern Debt.com has also been monitoring but at a more granular level. According to the 2026 Credit Card Debt survey, 46% of respondents have maxed out their credit cards. More than half (57%) say inflation has caused them to carry a larger monthly balance. 

Americans carrying five-figure credit card debt have seen the largest jump in the survey’s three-year history. Roughly 3 in 10 Americans owe $10,000 or more, including 9% who carry more than $30,000 in credit card balances.

Interest rates may be compounding the problem. The number who say their credit card balances have interest rates of 21% or higher has increased from 35% in 2024 to 41% this year.

Most attribute their credit card use to rising costs…

• Have maxed out a credit card due to inflation: 46%
• Use credit cards to make ends meet: 55%
• Carry larger balances due to inflation: 57%

“When nearly half of those who have maxed out their cards owe more than $10,000 and a staggering 15% are carrying balances over $30,000, we aren’t just looking at a budgeting issue; we’re looking at a financial emergency,” says Howard Dvorkin, CPA and Chairman of Debt.com. “At these levels, the interest alone can become a barrier to financial stability.” 

There may be some signs of improvement

The Fed found that overall household debt was down by $13 billion, and a separate Debt.com survey lines up with those findings. 

The number living paycheck to paycheck has dropped by 21 points since last year. The annual budgeting survey has asked more than 1,000 Americans each year for the past five consecutive years, and the response is at its lowest…

• 2022: 50%
• 2023: 50%
• 2024: 60%
• 2025: 69%
• 2026: 48%

"A 21-point drop in Americans living paycheck to paycheck is a massive victory on paper, but context is everything," Howard Dvorkin says. "We cannot look at 48% and think the battle is won. Nearly half of our country is still one missed paycheck away from a financial crisis." 

Dvorkin has a point. Americans are still struggling with high-interest credit card debt. But what many don’t realize is there are solutions to their problems. 

The first step is a phone call to (844) 899-7493. Debt.com offers a free first analysis with a specialist who can help you find the debt relief path that fits your situation.