Credit card debt rises to a record $1.29T as household debt reaches $19.1T
Credit card balances rose by $22B in the third quarter to a record $1.29T, the Federal Reserve Bank of New York said on Tuesday.
That is a 1.7% increase from the second quarter. Balances are now above the $1.28T they reached at the end of 2025, and 4.2% higher than a year earlier.
Total household debt grew by $334B, or 1.8%, to $19.1T. Donghoon Lee, an economic research advisor at the New York Fed, said the growth was "led by increases in mortgage and home equity line of credit originations."
| Debt type | Balance at end of September | Change in the quarter |
|---|---|---|
| Mortgages | $13.4T | +$257B |
| Auto loans | $1.73T | +$21B |
| Student loans | $1.66T | +$5B |
| Credit cards | $1.29T | +$22B |
| Home equity lines of credit | $481B | +$23B |
| Total household debt | $19.1T | +$334B |
About half of the mortgage increase came from balances reported again after a gap in the previous quarter's data. Home equity lines of credit grew by the most since 2005.
More borrowers are behind on their payments. At the end of September, 5.0% of household debt was in some stage of delinquency, up from 4.7% three months earlier.
Credit cards bucked that trend. A slightly smaller share of card balances moved into early delinquency than in the second quarter, while the share rose for auto loans and mortgages. The share of student loan balances at least 90 days past due rose from 10.6% to 10.9%.
The New York Fed's researchers said on a press call: "Overall debt has been growing. This does reflect financial hardship out there."
In a blog post published with the report, they found that more of the cards issued during the pandemic went to borrowers with lower incomes and credit scores, and "those accounts are now showing higher levels of distress."
Cards issued since early 2023 have gone mostly to borrowers with higher scores. The researchers expect new card delinquencies to keep improving, absent shocks to the economy.
The New York Fed's next report, covering the fourth quarter, is due in February.
Sources & Further Reading
- "Household Debt Increased Moderately; Delinquency Transition Rates Remain Flat." Federal Reserve Bank of New York. November 10, 2026.
- "Quarterly Report on Household Debt and Credit, 2025:Q4." Federal Reserve Bank of New York. February 2026.
- "Credit card debt climbs to a record $1.29 trillion, New York Fed research finds." CNBC. November 10, 2026.
- "Quarterly Report on Household Debt and Credit, 2026:Q3." Federal Reserve Bank of New York. November 10, 2026.
- "A Look at the Wider Divide in Credit Card Delinquency by Income." Liberty Street Economics, Federal Reserve Bank of New York. November 10, 2026.
This article was drafted with the help of AI. Kris Gunnars fact-checked, edited and published the article and is responsible for its accuracy and quality. How we use AI
