Credit card debt in the United States is growing near a record level, having increased from $54 billion to $1.26 trillion between April and June compared to the same period last year, according to a report for him Federal Reserve Bank of New York.
That figure is just below last year‘s record of 1.28 trillion dollars.
The report, released Tuesday, also shows that credit card debt rose by $21 billion, or 1.7%, in the second quarter compared to earlier this year, meaning Americans were carrying more debt in the summer than in the first three months of 2026.
“Mortgage and student loan balances saw a small decrease, while there were increases in other debt products,” a statement reads. blog post that accompanies the Federal Reserve report.
An increase in credit card debt more than 90 days past due, from 7.6% at the end of 2022 to 12.8% earlier this year, raised concerns about household stress at “rates not seen since the Great Recession.” Investigators found that the pace of new breaches had remained stable for about two years.
The overall proportion of household debt held by people who were behind on their payments fell slightly in the months between April and June to 4.7% of outstanding balances, down from 4.8% in the previous quarter.
High inflation has made it more difficult for many households to maintain their standard of living, according to Lucia Dunn, professor emeritus of economics at Ohio State University.
“A lot of it is feeding the kids, going to the stores, buying school supplies, food, baby formula and diapers,” Dunn said. “I’m sure a lot of those people have to balance because they’re just struggling financially.”
The Consumer Price Index report published on Wednesday presented that prices increased by 0.1% in July compared to the previous month, remaining at higher levels than those observed before the war with Iran.
Dunn said using a credit card and paying off the balance each month and carrying the balance month to month carries different risks. Carrying a balance can become a problem, although it can also be useful in certain circumstances, such as when someone loses their job or needs to cover an unexpected expense.
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“A lot of this has to do with economics,” he said. “We are in difficult times.
“Going into debt when there is a recession is very serious for people and can cause a lot of damage,” Dunn added, pointing to the 2008 financial crisis as an example.
The Federal Reserve report also revealed that American consumers withdrew a record amount in car loans between April and June, reaching 211 billion dollars in nominal terms.