Credit card debt hits record $1.28 trillion. Here's why — and how to get ahead of it.

Core Insights - Total household debt in the U.S. reached a record high of $18.8 trillion, increasing by $191 billion or 1% in Q4 2025 [1] - Credit card balances rose to a record $1.28 trillion, with a $44 billion increase in Q4 2025 [2] - Delinquency rates for outstanding debt increased to 4.8%, particularly affecting younger and lower-income borrowers [3] Household Debt Overview - The increase in household debt is attributed to rising credit card balances, mortgage balances, and auto loan balances, with mortgages totaling $13.17 trillion and auto loans at $1.67 trillion [2] - The affordability crisis has led 46% of U.S. adults with credit cards to carry a balance, often to cover everyday expenses [6] Delinquency Trends - Serious delinquency rates increased for credit cards, mortgages, and student loans, while auto loans and home equity lines of credit saw slight decreases [4] - Approximately 1 million student loan borrowers are in default, with millions more delinquent on payments [4] Economic Context - The cost of housing doubled from 2018 to 2024, and the cost of new cars doubled from 2011 to 2025, while purchasing power grew less than 12% during the same period [9] - The financial divide between generations is widening, particularly affecting Gen Z and some millennials [7] Credit Card Usage - The average bankcard balance per account was approximately $1,890 in November 2025, remaining stable despite a 2.7% increase in the Consumer Price Index [5] - Average credit card interest rates are currently over 20%, contributing to the rising credit card balances [6]