# Credit card debt hits record $1.29 trillion

> Americans owe more on credit cards than ever before as inflation and high borrowing costs squeeze household finances.
- Title: Credit card debt hits record $1.29 trillion · CNBC | Shortify
- Summary: Americans owe more on credit cards than ever before as inflation and high borrowing costs squeeze household finances.
- Keywords: credit card debt, federal reserve bank of new york, transunion, household debt, inflation, consumer finance, borrowing costs, CNBC
- Source: CNBC — https://cnbc.com/2026/11/10/credit-card-debt-record.html
- Author: Jessica Dickler
- Published: 2026-11-10T17:16:18+00:00
- Read time: 1 min
- Topics: credit card debt, federal reserve bank of new york, transunion, household debt, inflation, consumer finance, borrowing costs, business, finance
## Record credit card debt
Americans collectively owe $1.29 trillion on credit cards, a record high. Balances climbed $22 billion in the third quarter and are up 4.2% from a year earlier.
## Average balance per person
The average credit card balance per consumer now stands at $6,678, up 2.4% year over year. The number of cardholders rose 2% to 178 million from 174.8 million.
## Why credit cards are expensive
The average interest rate on a new credit card offer is about 24%. Credit cards remain one of the most expensive ways to borrow, even though they are more accessible than other loans.

> Credit cards continue to be one of the most expensive ways to borrow.
## Rising distress among borrowers
An increasing share of new credit cards have gone to borrowers with lower incomes and credit scores. Those accounts are now showing higher levels of distress, the New York Fed researchers said.
## Loosened lending after pandemic
After credit card issuers loosened their lending standards during the Covid pandemic, delinquency rates rose in the years that followed, according to New York Fed researchers.
## Inflation squeezes low-income households
Macroeconomic headwinds including high inflation and rising borrowing costs have squeezed consumers. Inflation has outpaced wage growth for low-income brackets, the New York Fed said.
## Damage already done
Higher prices and higher rates have pushed more people into debt. Even though growth is slowing, from a household finance standpoint, a lot of damage has been done, analysts say.

> from a household finance standpoint, a lot of damage has been done
## Key takeaway

American credit card debt reached a record $1.29 trillion in the third quarter, driven by financial pressures from inflation and rising borrowing costs.