US Credit Card Debt 2-18-26

As of February 2026, total U.S. credit card debt has hit a new record high of $1.28 trillion, according to reports from the Federal Reserve Bank of New York based on Q4 2025 data. 

Here are the key details regarding U.S. credit card debt in early 2026: 

Record High: The $1.28 trillion figure represents a $44 billion increase in just three months, signaling continued growth in borrowing.

Year-over-Year Increase: Credit card balances are up 5.5% compared to the same period in 2024–2025.

Driver of Debt: The rise is largely attributed to consumers using credit to manage higher living costs and essential expenses.

High Interest Rates: Despite potential future Federal Reserve rate cuts, consumers are still facing elevated borrowing costs, with average APRs often exceeding 20%.

Delinquency Trends: Delinquency rates have moved higher, particularly among younger and lower-income borrowers, reflecting financial stress in a "K-shaped" economy.

2026 Projections: While debt has reached this new peak, some projections suggest that the annual growth rate of credit card debt may slow to around 2.3% for the full year of 2026. 

The data highlights a significant "K-shaped" divide, where lower-income households are facing increased pressure while higher-income consumers may be faring better. 

As of February 2026, total U.S. credit card debt has reached a record high of $1.28 trillion. This milestone follows a steady increase throughout 2025, during which debt grew by approximately $740 billion across all household categories. 

Key 2026 Credit Card Debt Statistics

Total Outstanding Balance: $1.28 trillion as of February 2026.

Average Debt per Household: Approximately $9,148.

Average Debt per Individual: Roughly $6,523.

Average Interest Rate (APR): Projected to hover around 19.4% to 19.8% throughout 2026, down slightly from 2025 highs due to anticipated Federal Reserve rate cuts. 

Economic Outlook and Trends for 2026

Slowest Growth Since 2013: Experts at TransUnion project that credit card balances will grow by only 2.3% in 2026, the smallest annual increase in over a decade (excluding the first year of the pandemic).

Stabilizing Delinquencies: Serious delinquency rates (90+ days past due) are expected to remain relatively flat, inching from 2.56% to 2.57% by year-end 2026.

K-Shaped Financial Stress: While overall debt levels are stabilizing, financial distress is deepening for lower-income households. New York Fed data shows that mortgage and credit card delinquencies are increasingly concentrated in lower-income areas.

Generation with Highest Debt: Generation X (ages 45–60) continues to carry the highest average balances, reaching approximately $9,600 per person.

Persistent Balances: Approximately 70% of credit card users expected to carry their 2025 holiday debt well into 2026. 

For personalized debt management, you can use tools like the Bankrate Debt Payoff Calculator to estimate repayment timelines based on current interest rates. 

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Comments

To avoid excessive credit card interest costs, card holders should stop paying the “minimum payment” and pay off the entire card balance.

Norb Leahy, Dunwoody GA Tea Party Leader