US Credit Card Debt Sits Near Record $1.25 Trillion as Average APR Tops 22%

Americans owed $1.252 trillion in credit card debt in the first quarter of 2026, just below the all-time record of $1.277 trillion set the previous quarter, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit.

The numbers behind the record

The average individual cardholder balance reached $6,519 in the first quarter, up 2.3% from $6,371 a year earlier — a 5.9% year-over-year increase in total debt even with the slight quarterly dip from the Q4 2025 peak.

Interest rates are making the debt more expensive to carry

Average APRs on credit card accounts actually accruing interest rose to 22.15% in the second quarter of 2026, up from 21.52% in the first quarter. At an average 21% APR across all accounts, Americans are paying an estimated $253 billion a year in interest and fees combined — described by the report as the most expensive consumer debt cycle in modern US history.

Why this matters beyond the headline total

Record debt combined with rising average rates means a growing share of minimum payments goes toward interest rather than reducing principal — exactly the dynamic behind the "minimum payment trap," where balances can take years to clear even with regular payments. Anyone carrying a revolving balance at anywhere near the current average rate has a strong mathematical case for prioritizing payoff above most other financial goals.