Americans are carrying nearly a record amount of credit card debt, and new data shows a growing share of balances are seriously delinquent.
Credit card balances climbed to $1.26 trillion in the second quarter of 2026, up $21 billion from the previous quarter, according to the Federal Reserve Bank of New York. The total remains just below the record $1.28 trillion reached in the fourth quarter of 2025.
The increase comes as many households continue to deal with elevated costs for everyday necessities, including groceries and gasoline. For consumers who carry a balance from month to month, high credit card interest rates can make it especially difficult to make meaningful progress on what they owe.
Millions of Americans Carry Balances
About 175 million consumers have credit cards, and roughly 60% carry revolving debt, meaning they don’t pay their full balance each month and are being charged huge interest on what remains. In many cases well over 21%.
That interest can add substantially to the cost of everyday purchases. Credit card interest rates remain near historically high levels, making revolving credit one of the more expensive ways for consumers to borrow money.
The latest New York Fed data also shows a concerning trend in serious delinquencies. The share of credit card balances that were more than 90 days past due rose from 7.6% in mid-2022 to 12.8% in early 2026.
There is an important caveat, however. New York Fed researchers say the elevated delinquency figure is partly affected by changes in how lenders report charged-off debt. In recent years, more charged-off accounts have remained on credit reports for longer periods, which can make overall delinquency measures look worse even though the rate of new delinquencies has been relatively stable since 2024.
What Can You Do About Credit Card Debt?
Financial advisers say consumers shouldn’t wait until they’re seriously behind to ask their credit card company for help.
One strategy is surprisingly simple: call the card issuer and ask for a lower interest rate.
Houston financial adviser Richard Rosso has recommended being direct, polite and persistent when making the request. Consumers can explain that they’re having difficulty keeping up and ask whether the issuer can offer a lower rate or other assistance.
“Get on the phone and say listen, we’re having a really hard time with this. Can you negotiate a lower rate? You’ve got to be direct and you’ve got to be polite and you’ve got to be consistent and say I really do need help. So maybe you can lower my rate, give me a special rate and most of the time, if you are proactive your institution is going to work with you to do it”, Rosso says.
A lower rate isn’t guaranteed, but consumers who ask may have a better chance of getting one. A recent LendingTree analysis cited by KPRC found that 84% of cardholders who requested a lower interest rate received one.
If the first customer-service representative says no, consumers can ask whether a supervisor or account-retention specialist can review the account.
Try the Debt Snowball Method
Another strategy is known as the debt snowball method.
Instead of trying to tackle the largest balance first, consumers pay as much as possible toward their smallest credit card balance while continuing to make the minimum payments on their other cards.
Once the smallest balance is eliminated, that payment amount can be redirected toward the next-smallest balance.
The idea is to create a series of small wins that can build momentum and motivation as you work toward eliminating larger balances.
For consumers struggling with credit card debt, the most important step may be simply getting started. Contacting the card issuer, asking about a lower interest rate and developing a realistic payoff strategy can help reduce the amount of interest paid over time.