Credit Card Debt Nears Record High as More Than Half of Americans Say Payoff Takes Over Six Months

The New York Fed recently said credit card debt is creeping back toward a record high, after a brief dip at the beginning of the year.

The latest quarterly report on Household Debt and Credit shows balances are just $20 billion under their record high of $1.28 trillion at the end of 2025.

A new survey from Achieve finds that most people aren’t reaching for plastic for vacations or other luxuries. More than half (55%) say they need credit cards to cover essentials like gas and groceries. Separately, 56% say paying off short-term debt, including credit cards, Buy Now Pay Later, and medical bills, will take more than six months.

“Short-term debts often start off as a temporary stop-gap solution to household budget gaps. With elevated costs of living and compounding interest charges, these debts can quickly create sustained pressure on household balance sheets and budgets,” said Achieve Co-Founder and Co-CEO Brad Stroh. “When that happens, consumers are often unsure how to navigate their debt or where to turn for help. When consumers can’t see a clear path forward, it often erodes their confidence and expectations for the economy overall.”

Nonstop pressure

That echoes Debt.com’s 2026 Credit Card Survey, which found 55% need credit cards simply to cover groceries, utilities, and rent. Credit card debt is lingering longer than it used to.

Nearly half (47%) told Debt.com they had recently maxed out at least one credit card, and 57% said persistent inflation has them carrying a larger balance than a year ago.

Achieve found 1 in 4 respondents (27%) have already carried an essentials-driven balance for more than six months.

“Consumers commonly narrowly focus on whether they can make the next payment, but the total cost, liability drag and length of the repayment period matters too,” Stroh said. “Carrying the burden of debt for essential expenses can limit the room households retain to absorb additional unexpected costs or make meaningful progress on other financial priorities.”

The help many don’t seek

Earlier this year, Debt.com conducted a survey to see how many Americans know about and seek help from a common debt relief solution. Many report disrupted sleep and anxiety, and many avoid seeking help out of shame or embarrassment.

One in five said they lose sleep, are stressed, or experience anxiety over debt, while 14% expect their debt situation to get worse over the next year. Nearly 3 in 4 (73%) have heard of debt settlement, and 32% described it as “a helpful way to deal with outstanding debt.”

More than half avoid seeking help because it makes them feel embarrassed or ashamed.

Achieve’s survey focused more on what’s physically affecting people than on what’s mentally affecting them. One in five (19%) have delayed or skipped medical treatments because of debt, and 11% have skipped or reduced medication doses.

“Many consumers are keeping up with bills, but that does not mean the debt is becoming easier to manage,” Stroh said. “That payment pressure quickly reaches core household needs and can even impact healthcare choices.”

Debt from credit cards, medical bills, and personal loans each has solutions unique to the people facing it. One call to Debt.com can help point you to the help you need. Stop making difficult decisions and make the easy one: find help.