Credit Card Balances Up Nearly 6% Year Over Year, Fed Report Says
Credit card debt fell $25 billion in the first quarter, but New York Fed researchers said balances remained $1.25 trillion.
- On Tuesday, the Federal Reserve Bank of New York reported that credit card balances decreased by $25 billion to $1.25 trillion in the first quarter of 2026, though balances remain up 5.9% year over year.
- This seasonal decline follows the peak holiday shopping season, when credit card debt typically ticks higher before falling in the first quarter of the new year.
- Despite the quarterly dip, 53% of American consumers carry credit card debt to cover essential expenses, according to a separate study by Achieve, with 57% of struggling borrowers expecting six months or longer to pay off balances.
- While early delinquency rates for credit cards ticked downward to 8.6% year over year, market strategist Christian Floro warned that soaring gasoline prices—averaging $4.50 nationally, up from about $3.14 a year ago—could push future delinquencies higher.
- Researchers observed evidence of a 'K-shaped' economy, where Americans remain on stable footing overall, yet low-income households face increased financial strain as wages struggle to keep pace with essential costs.
12 Articles
12 Articles
Credit Card Balances Up Nearly 6% Year Over Year, Fed Report Says
Credit card balances fell in the first quarter of 2026, according to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York. The report shows credit card balances decreased by $25 billion to $1.25 trillion, a 2.3% decrease from the previous quarter. However, that’s still a 5.9% increase from the previous year. The dip in balances is attributed to seasonality, as the New York Fed pointed out in a call w…
US household debt ticks up to new all-time high as inflation continues to rise
American Express, Discover, MasterCard and Visa credit cards are displayed for a photograph in New York, U.S., on Tuesday, May 18, 2010. (Daniel Acker/Bloomberg via Getty Images) (NEW YORK) — U.S. household debt, including mortgages, credit cards, auto loans and student loans, reached an all-time high of $18.8 trillion in the first three months of the year, according to new data Tuesday from the Federal Reserve Bank of New York. The increase in …
Delinquencies Holds Steady in First Quarter of 2026
Consumer loan delinquency rates continued to normalize in the first quarter of 2026 as pandemic-related disruptions diminished and credit conditions moved closer to historical norms. According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, about 4.8% of outstanding household debt balances were in some stage […]
Card Balances up and other Digital Transactions News briefs from 5/13/26
Some 53% of U.S. consumers carry a balance on their credit cards in response to rising costs, while 25% carry a balance for six months or more, says a survey from personal-finance platform Achieve. The research, conducted in March by the Achieve Center for Consumer Insights, queried 2,000 consumers. Xero, a payments platform for small businesses, said a previously announced integration with AI firm Anthropic has gone live, enabling Anthropic’s C…
US Household Debt Hits $18.8 Trillion as Student Loan Delinquencies Surge
Total US household debt reached a record $18.8 trillion in Q1 2026, the Federal Reserve Bank of New York reported on Tuesday, with student loan delinquencies surging as pandemic-era relief programs continue to unwind and mortgage distress quietly climbing — even as credit card and auto loan delinquency rates held mostly steady. The report‘s headline […]
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