U.S. credit card debt hits $1.26 trillion in Q2 2026, near record

Americans' recognition paper indebtedness climbed to $1.26 trillion successful the 2nd 4th of 2026, according to the Federal Reserve Bank of New York's Quarterly Report connected Household Debt and Credit, released Tuesday. The $21 cardinal quarterly summation near full paper indebtedness astatine $1.26 trillion, conscionable shy of the $1.28 trillion highest reached successful the 4th fourth of past year, according to ABC News.

Total U.S. household indebtedness edged down $13 cardinal successful the 2nd 4th to $18.8 trillion. Mortgage balances led the decline, falling $74 cardinal to $13.1 trillion. Auto indebtedness balances roseate $28 cardinal to $1.71 trillion, a caller grounds high. Home equity lines of recognition accrued $13 cardinal to $459 billion, portion pupil indebtedness balances declined $7 cardinal to $1.65 trillion.

Between mid-2022 and aboriginal 2026, the information of paper balances that had gone astatine slightest 90 days without outgo climbed from 7.6% to 12.8%, according to CNBC. New York Fed researchers cautioned connected a property telephone Tuesday that the fig reflects a backlog of aged charged-off debts lingering connected recognition reports alternatively than a wide deterioration successful consumers' existent repayment behavior.

In an accompanying blog post, New York Fed researchers elaborate a displacement successful lender reporting practices: by 2024, 80% of charged-off balances were inactive disposable connected recognition reports a afloat twelvemonth aft being written off, compared with astir 40% during the 2004–2012 period. When those charged-off balances are stripped out, delinquency measures align much intimately with the complaint of caller delinquencies, which has held mostly dependable since aboriginal 2024.

"Delinquency rates crossed astir products person held dependable implicit the past 2 years," said Joelle Scally, Economic Policy Advisor astatine the New York Fed, successful a statement. "Still, caller delinquencies for car loans and recognition cards stay astatine elevated levels, a inclination we'll proceed to monitor."

Of the astir 175 cardinal Americans with recognition cards, astir 60% bash not wage disconnected their balances each month, a signifier that leaves those households carrying ongoing interest-bearing debt, according to CNBC. New York Fed researchers said the signifier points to a "K-shaped economy," noting that galore households person small fiscal cushion betwixt paychecks.

The existent figures correspond a reversal from the anterior quarter. Credit paper balances had deed $1.28 trillion successful the 4th fourth of that twelvemonth — a grounds successful information the New York Fed has tracked since 1999 — earlier pulling back. The caller information amusement balances person since resumed their climb, present sitting $21 cardinal supra wherever they stood 3 months ago.