American consumers are carrying an enormous amount of credit card debt, with outstanding balances reaching approximately $1.263 trillion in the second quarter of 2026, according to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit. Credit card balances increased by about $21 billion, or 1.7%, from the previous quarter, and were roughly $54 billion higher than a year earlier. The total remains close to the roughly $1.28 trillion level recorded at the end of 2025. At the same time, overall U.S. household debt edged down by $13 billion to approximately $18.77 trillion, largely reflecting a decline in reported mortgage balances, while auto-loan balances increased by $28 billion to $1.71 trillion. The New York Fed said 4.7% of outstanding household debt was in some stage of delinquency during the quarter, while the transition into early delinquency was largely steady for credit cards. The growing card balance comes as borrowing remains expensive for many Americans; recent reporting indicates average credit-card APRs are above 22%, making revolving balances particularly costly for consumers who do not pay their bills in full each month. The latest figures therefore highlight both the continued importance of credit in American household spending and the financial pressure that high-interest revolving debt can create, with future trends likely to depend on consumer spending, inflation, employment, interest rates and households’ ability to keep up with monthly payments.
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