As more borrowers default on U.S. credit card debt, US credit card debt hits $1.25 trillion: Are Americans going back 18 years?
A report from the Federal Reserve Bank of New York shows that U.S. consumers’ credit card payment delinquency rates have reached their highest level since the 2008 financial crisis. In the first quarter of 2026, approximately 13% of U.S. credit card balances were at least 90 days past due. This is the highest delinquency level since 2011, when the country was still recovering from the Great Recession.
The report also pointed out Total number of credit cards in the United States Debt has reached $1.25 trillion, near its highest level on record. Experts say more and more consumers are getting into serious credit card debt and are finding it difficult to collect. Grace Zwemer, U.S. economist at Oxford Economics, said the data showed the increasing financial vulnerability of some consumers. Zwemer said the problem isn’t that many new people are defaulting on their payments, but that those who are already behind on payments are falling deeper into debt, USA Today reported.
Credit card debt drops during pandemic
Credit card debt has declined during the pandemic as stimulus payments and reduced spending have helped consumers pay down their balances. Debt is starting to rise again as inflation and borrowing costs rise.
In early 2023, U.S. credit card balances exceeded $1 trillion for the first time. In subsequent years, delinquency rates continued to rise, reaching 13% in the first quarter of 2026. This is close to the Great Recession peak of 13.7% recorded in early 2010.
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WalletHub founder and CEO Odysseas Papadimitriou told USA Today that the country is heading in a worrying direction. average American He added that the family currently has $11,169 in credit card debt.
Inflation and high interest rates make things worse
Financial experts say many cardholders continue to struggle because prices remain high and credit card interest rates remain high. The average interest rate on credit cards rose from 14.6% in February 2022 to a peak of 21.8% in August 2024.
Interest rates remain very high, averaging around 21% in February 2026. Experts say the growing number of overdue debts suggests some consumers are in debt distress and may have no realistic way to catch up. Papadimitriou said many consumers in financial distress no longer have easy options to get out of their situation, USA Today reported.
Many Americans Still Manage Their Credit Cards Well
Despite the growing debt problem, millions of Americans still handle their credit cards responsibly. About half of U.S. credit card holders carry debt every month. The other half pays the full balance each month to avoid paying high interest. A report comes from federal reserve bank Philadelphia found that while the amount of past-due debt has increased, the number of delinquent accounts has remained fairly stable.
Experts say this is not another 2008 crisis
Mortgage delinquency rates remain well below levels seen during the Great Recession. The 2008 financial crisis was largely caused by problems in the housing market, unlike today’s situation. Experts believe the current credit card problems are not comparable to the crisis that led to the Great Recession.
Experts point out that credit card delinquency rates are still rising, but at a slower pace than they were two or three years ago. According to USA Today, the number of new delinquent credit card accounts is still high, but overall it has stabilized.
