Americans' credit card debt hits a record $1.29 trillion, New York Fed reports
Total US household debt also rose $334 billion to a record $19.1 trillion in the third quarter, according to the New York Fed's report.
Americans' credit card balances reached a record $1.29 trillion in the third quarter, the Bank of New York said in its household debt report released Tuesday. Balances grew by $22 billion in the quarter. Total household debt, counting , car loans and student loans, also hit a record $19.1 trillion.
Axios notes that the figures are not adjusted for , so part of the rise comes from higher prices, not larger borrowing. Axios also reports that the share of card balances becoming seriously delinquent edged down but remains above its level before the pandemic. A separate New York Fed report found that in the lowest-income neighborhoods, the share of card balances becoming seriously delinquent over the past year was more than double the rate in the wealthiest ones.
Borrowers under 30 had the highest rate of card debt newly at least 90 days overdue. New York Fed researchers said on a press call that the debt growth reflects financial hardship. The Bureau of Labor Statistics reported Tuesday that costs rose more than expected in October.
The data comes after Democratic wins, with voters unhappy about the economy, and The Hill reports some Democratic lawmakers are pushing to cap interest rates.
- $1.29 trillionrecord US credit card balances in the third quarter, New York FedCNBC
- $334 billionrise in total household debt in the quarterCNBC
- 6.9%credit card debt becoming seriously overdue, per AxiosAxios
- 10.3%card balances seriously delinquent in lowest-income neighborhoods over the past yearAxios
- $6,678average card balance per consumer, per TransUnionCNBC
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Liberal2 outlets
Record card debt and who is falling behind
Axios opens with the record $1.29 trillion and a "Why it matters" line about how falling behind on payments can trap households in "a cycle of fees, damaged credit and increasingly expensive borrowing." Its "Yes, but" notes that card balances becoming seriously delinquent edged down to 6.9%, still above the pre-pandemic 5.2%. It adds that the lowest-income neighborhoods show 10.3% against 4.4% in the wealthiest, and ends on Democrats, who "won the midterms promising to lower prices," saying relief voters can feel will be difficult to deliver.
CNBC carries the same record figure in its headline and builds the report around voices. New York Fed researchers said on a press call: "This does reflect financial hardship out there." Ted Rossman of Money Management International says "Higher prices and higher rates have pushed more people into debt."
TransUnion's Charlie Wise calls cards one of the most expensive ways to borrow. CNBC also notes October costs rose more than expected, per the Bureau of Labor Statistics, and quotes Kyle Moore of The Century Foundation saying many voters expressed dissatisfaction with the economy in the midterms.
Center2 outlets
Record card debt as Democrats push rate caps
The Hill and NewsNation both run the headline "Credit card debt mounts amid Democrats' push to cap interest rates." The Hill reports balances rose $22 billion in the third quarter, 1.7% from the second quarter, while some Democratic lawmakers push for rate caps. NewsNation says balances were $52 billion higher than in the third quarter of 2025 and that credit card debt topped $1.28 trillion, per the New York Fed.
Conservative2 outlets
Record debt as sign of a struggling economy
Daily Caller's headline says Americans are being "strangled" by the highest card debt in history. It reports the $1.29 trillion balance and $19.1 trillion in total debt, with delinquency of some kind up 0.3% to 5%. It adds that auto debt tops $1.7 trillion, surpassing card balances, and that just 27% of voters saw the economy moving the right way while Trump was in charge.
RedState asks in its headline whether help is on the way. It says most Republicans will agree that many voters backed Democrats over the economy, and it points to the 10-year yield and the cost of cars and housing. It argues that Democrats have no economic plan and pulled a "bait-and-switch" on voters.
An editor's note credits Trump's policies for an economy "back on track."
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For cardholders, the average interest rate on a new card offer is about 24%, according to LendingTree, and the average balance is $6,678 per consumer, according to TransUnion. TransUnion's Charlie Wise says cards "continue to be one of the most expensive ways to borrow." The Hill reports that some Democratic lawmakers are pushing to cap interest rates.
All sources: 6 articles from 6 outlets
Liberal (2)
- Axios: Credit card debt hits record high as Americans struggle with cost-of-living
- CNBC: Credit card debt climbs to a record $1.29 trillion, New York Fed research finds
Center (2)
- NewsNation: Credit card debt mounts amid Democrats' push to cap interest rates
- The Hill: Credit card debt mounts amid Democrats' push to cap interest rates
Conservative (2)
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