Credit card delinquencies in the United States have reached their highest level in 15 years, with 13.12% of credit card balances at least 90 days past due in the first quarter of 2026, up from 12.31% a year earlier, according to the Federal Reserve Bank of New York. The surge reflects widespread financial strain as Americans struggle with inflation and high interest rates.
The total U.S. credit card balance reached $1.25 trillion in the first quarter of 2026, up from $1.18 trillion in the same quarter of 2025. CardRates reported that more Americans are letting credit card payments slide as they contend with affordability issues and the rising cost of living.
Interest rates are intensifying the burden. The average credit card interest rate stands at 21% on all accounts and 21.52% on accounts carrying a balance, according to the Federal Reserve. This makes it difficult for cardholders to chip away at their balances, even when making payments on time.
The delinquency crisis spans income levels. The Federal Reserve Bank of St. Louis found that in the lowest-income 10% of ZIP codes, 22.8% of credit card debt was 90 or more days delinquent in the first quarter of 2025, while the highest-income 10% of ZIP codes saw an 8.3% delinquency rate. Both figures represent substantial increases from recent years.
A Crisis Reaching 2008 Levels
The current delinquency wave is particularly striking when compared to historical benchmarks. Researchers at the Federal Reserve Bank of St. Louis noted that the present share of credit card debt in delinquency is reaching levels seen during the 2008 global financial crisis, and the share of people in delinquency has surpassed crisis-era levels—despite a significantly stronger labor market today than existed then.
The previous peak in 90-day credit card delinquency rates occurred in the years following the 2008 financial crisis. TransUnion documented that credit card delinquencies peaked in the first quarter of 2009 during that downturn. The fact that delinquencies are now approaching those levels signals the depth of financial stress among American households.
The rise has been broad and continuing across geographies. The St. Louis Fed found that delinquency rates have trended upward since the second quarter of 2021 across all regions examined, though the pace of growth has slowed since early 2024. Lower-income areas have been hit harder: from the second quarter of 2021 to the first quarter of 2025, delinquency rates in the lowest-income 10% of ZIP codes grew by 63% in relative terms, compared to 44% in the highest-income areas.
Researchers at the St. Louis Fed suggest that the unconventional increase in credit scores during the COVID-19 pandemic may play a role in current delinquency rates, as some consumers with temporarily improved credit profiles may have taken on more debt than they could sustain once pandemic-era financial supports ended.
Sources
- Federal Reserve Bank of New York — Q1 2026 household debt and credit report, delinquency rates on credit cards
- CardRates.com — June 2026 reporting on 13.12% delinquency rate, credit card balances at $1.25 trillion, 21% average interest rates
- Yahoo Finance — June 2026 report citing Federal Reserve Bank of New York data on 90-day delinquencies and $1.25 trillion in balances
- Federal Reserve Bank of St. Louis — May 2025 analysis of credit card delinquency trends across income levels and comparison to 2008 financial crisis
- TransUnion — Historical data on credit card delinquency peaks during 2008-2009 financial crisis
