The credit card debt of Americans has reached a record high of $1.26 trillion, according to new data published on Tuesday by the Federal Reserve Bank of New York. That’s a staggering $21 billion increase in the second quarter of this year, bringing it to within $1 billion of the previous all-time high of $1.28 trillion, which it reached during Q4 of 2025.
The surge in credit card debt among Americans highlights strong consumer spending. Economists have also pointed out inflation, stressing that the surge is due to rising prices on almost every product. While daily essentials like groceries and gas have spiked, other lifestyle products have also seen an uptick. Consumers are paying more for the same product that cost less just a year ago.
This could be one of the reasons why credit card debt in America has reached $1.26 trillion. In addition, the rising costs lead to delinquency in payments, with an increasing number of people unable to clear the bill. “There are a lot of households who live paycheck to paycheck, and it just needs one thing to happen to them that could lead to a delinquency,” said New York Fed researchers.
The data shows that credit card debt in America that was delinquent for more than 90 days rose from 7.6% to 12.8% from mid-2022 through early 2026. That’s a sharp increase of 5.2%, indicating that the middle-income group is suffering financially. The researchers also noted that other debts, such as a house and car loan, are making people delinquent on their credit card payments.
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Can Credit Card Debt in America Breach All-Time High of $1.28 Trillion?
Yes, the credit card debt in America is shy of breaching its all-time high of $1.28 trillion. As home and car loans eat up a significant chunk of their income, they depend on credit cards for day-to-day survival. With inflation, even spending on bread and butter is a notch higher than last year. All of these combined can make it climb above the $1.28 trillion mark.
