On November 11, 2026, in New York, the Federal Reserve Bank of New York issued its Quarterly Report on Household Debt and Credit, showing total household debt expanded by $334 billion to reach $19.1 trillion.
Americans are carrying a record high amount of credit card debt, totaling nearly $1.3 trillion, according to the [New York Fed report]. Credit card balances increased by about $22 billion in the third quarter and now stand at around $1.285 trillion, with balances jumping approximately 62% over the last five years as reported by ABC News.
“Credit card debt usually has practical causes: Medical bills, car repairs, home repairs and day-to-day essentials such as gas and groceries are among the most common stories that we hear from clients,” Rossman said.an trigger a cycle of revolving debt.
Financial experts note that practical expenses like medical bills, car repairs, and groceries are the most common catalysts for hardship.
“I was doing OK until X happened,” said Rossman, describing common client stories to NBC News.
While gas prices have trended downward from wartime peaks, energy costs remain above prewar levels due to sustained disruptions in global oil flows. Meanwhile, average credit card interest rates hover near 21%, making it increasingly difficult for borrowers to pay down principal balances.
According to research published in Liberty Street Economics, credit card delinquency rose sharply between 2022 and 2024, with the steepest increases concentrated among borrowers in lower-income neighborhoods. During the pandemic years between 2020 and 2022, lenders eased underwriting standards, extending a larger share of new credit cards and credit limits to borrowers in the lowest zip-income quartile. Cards issued since early 2023 have generally gone to borrowers with higher credit scores, shifting the risk profile of newer originations. Across the broader economy, mortgage balances rose by $257 billion to total $13.4 trillion at the end of September.
Home equity lines of credit saw balances rise by $23 billion to $481 billion, marking the largest increase in those balances since 2005. Employment growth has shown signs of stabilization, averaging 137,000 jobs over a recent three-month period compared to job losses in 2025.
Yet the number of Americans out of work for six months or more has climbed to about 2 million, accounting for 27.6% of all unemployed workers by the end of October.
“Household budgets remain under pressure, and we continue to see that reflected in purchasing behavior across our categories,” said Scott Huckins, CEO of Reynolds Consumer Products, noting that shoppers are aggressively pursuing promotions and larger value packs.
For consumers seeking assistance with debt, the Federal Trade Commission recommends discussing options directly with card issuers to negotiate lower interest rates and establish realistic payment plans. Borrowers can also consult the [Federal Reserve G.19 report] to track revolving consumer credit trends and average interest rates.
“Keep good records of who you talk to, what you agreed to do, and next steps,” the FTC advises, recommending that consumers secure written confirmation for any revised repayment terms.
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