Consumers push credit card balances to record $1.3tn
Updated
Updated · The New York Times · May 10
Consumers push credit card balances to record $1.3tn
8 articles · Updated · The New York Times · May 10
New credit card applications rose in February to their highest level since late 2022 as households grappled with higher food, housing, healthcare and utility costs.
Federal Reserve data show the share of after-tax income used to service debt has been rising since early 2025, signalling growing strain from borrowing to cover routine expenses.
The trend reflects how even relatively stable earners are cutting savings, reducing spending elsewhere and working extra hours to manage unexpected bills alongside persistently rising essential costs.
Is the American consumer debt crisis overblown if real per-person balances have remained flat for a decade?
When a $140k income isn't enough, what does financial stability look like for the American middle class in 2026?
What is the hidden public health cost of millions delaying medical care to pay for groceries and gas?
The 2026 U.S. Credit Card Debt Crisis: $1.28 Trillion and Rising Delinquencies Challenge Households and Policymakers
Overview
In early 2026, American households are facing unprecedented financial strain as a notable shift in consumer expectations reveals growing pessimism about the future. Fewer people expect their finances to improve, and more anticipate things will get worse, reflecting a challenging economic environment. This widespread pessimism signals an underlying strain on household finances, leading to record levels of credit card debt and a significant rise in payment delinquencies. As families grapple with a growing affordability crisis, the accumulation of credit card debt highlights the uneven burden many Americans now face.