The cause is both rising consumer costs and growing financial strain.
A Rapid Climb in Credit Card Balances
Over the past few years, Americans have leaned more heavily on credit cards to manage everyday expenses. According to Federal Reserve data, total U.S. Credit card debt reached $1.23 trillion at the end of q3 in 2025. The average American is carrying $6,523 in revolving balances. This marks one of the steepest climbs in consumer credit usage in decades.
Delinquencies Are Rising Too
It’s not just balances that are increasing—delinquency rates have been rising steadily across income groups and regions, signaling deeper financial stress. Analysts note that the share of Americans at least 30 days behind on payments has continued to grow, reversing the unusually low delinquency levels seen during the pandemic.
What’s Driving the Surge?
Inflation: Higher prices for essentials have pushed more households to rely on credit.
Interest Rates: With APRs often exceeding 20%, balances grow faster and become harder to pay down.
Post‑pandemic normalization: After stimulus-era debt declines, borrowing patterns have returned—and in many cases exceeded—pre‑2020 levels.
Bottom Line
The rise in U.S. credit card debt is more than a headline—it’s a reflection of the financial pressure many households are facing. As balances and delinquencies climb, the trend underscores the importance of budgeting, debt management, and financial resilience in an increasingly expensive economy.
References
Forbes
How Does Your Debt Compare? U.S. Average Credit Card Debt In 2026
https://www.forbes.com/advisor/credit-cards/average-credit-card-debt
Federal Reserve Bank of St. Louis
The Broad, Continuing Rise in Credit Card Delinquency Revisited
https://www.stlouisfed.org/on-the-economy/2025/may/broad-continuing-rise-delinquent-us-