Updated
Updated · abcnews.com · Aug 11
US Credit Card Debt Climbs to $1.26 Trillion as Delinquency Rate Hits 12.8%
Updated
Updated · abcnews.com · Aug 11

US Credit Card Debt Climbs to $1.26 Trillion as Delinquency Rate Hits 12.8%

3 articles · Updated · abcnews.com · Aug 11

Summary

  • $21 billion in second-quarter growth pushed Americans' credit card balances to $1.26 trillion, just below the $1.28 trillion record set in late 2025, New York Fed data showed.
  • Strong consumer spending and higher prices for essentials such as groceries and gas helped drive balances higher, while researchers said worsening delinquencies largely reflect older debt rather than new charges.
  • 12.8% of credit card balances were more than 90 days delinquent in early 2026, up from 7.6% in mid-2022, underscoring strain on households living paycheck to paycheck.
  • Across household borrowing, total US debt reached $18.8 trillion; auto loans rose to a record $1.71 trillion and home equity lines increased, while student and mortgage debt fell.

Insights

With credit card debt nearing record highs, are older unpaid balances masking a much deeper financial crisis for American households?
As millions tap into home equity to survive inflation, could this desperate borrowing trend trigger the next major foreclosure wave?