Americans are facing a record high in credit card debt, with balances nearing $1.3 trillion, according to the Federal Reserve Bank of New York. The latest report for the third quarter of 2026 reveals that credit card debt has surged by about $52 billion since 2025, reaching approximately $1.285 trillion. This marks a 62% increase, or $500 billion, over the past five years, with debt continuing to climb from $1.26 trillion in the second quarter of this year.
The Board of Governors of the Federal Reserve System reported that 82% of adults had a credit card in 2025, with the average interest rate currently around 21%. Other forms of debt, including mortgages, student loans, and car loans, have also risen. The average price of a car has reached about $51,000, driven by inflation, global conflict, and higher energy costs, as noted by Edmunds and Kelley Blue Book.
Overall household debt has increased to about $19.1 trillion in the third quarter, a rise of nearly 2% or $334 billion. For those struggling with credit card debt, the Federal Trade Commission advises discussing options with credit card companies, negotiating lower interest rates, and setting up realistic payment plans. The FTC also recommends keeping detailed records of any agreements made.