Overview
- The New York Federal Reserve reported that U.S. credit-card debt reached $1.25 trillion in the first quarter of 2026, the largest first-quarter total since the Fed began tracking the series.
- Average credit-card interest rates are roughly 21 percent, a level near 2024 highs that reflects higher Treasury yields and recent inflationary pressure.
- Most balances are tied to everyday spending rather than big-ticket purchases, with about $883 billion used for routine expenses according to an industry report.
- A Consolidated Credit survey found many consumers carry balances and that about one in five would delay seeking professional help until their situation becomes dire.
- Experts advise practical steps—ask issuers to lower APRs, use 0% balance-transfer offers or personal-loan consolidation, and pick a repayment plan such as avalanche or snowball to reduce costs and stay on track.