U.S. households had $1.33 trillion in credit card debt at the end of February 2026, a new record for the month, but 10 percent below the record when adjusted for inflation.
With the average credit card APR remaining extremely high, credit card debt will increase by $50 billion by the end of 2026, WalletHub, a consumer and personal finance website, projects.
The findings are from WalletHub’s latest “Credit Card Debt Study.”
“With gas and grocery prices on the rise, we can expect consumer credit card debt to flirt with the inflation-adjusted record in the coming months,” John Kiernan, WalletHub editor, said.
Kiernan said people aren’t going to get a break from inflated prices or high interest rates anytime soon, so they should pay attention to their finances.
“It’s never easy to cut spending,” he said, “but that might be the only path for a lot of us.”
WalletHub offers these five tips for dealing with credit card debt:
- Separate your everyday expenses from your debt. When you carry a credit card balance from billing period to billing period, you lose your grace period for new purchases. That means interest starts applying to new purchases right away. But, if you use one card for ongoing debt and another for everyday purchases that you can pay off by the due date, the everyday purchases should never accrue interest charges.
- Use a balance transfer deal to lower the cost of existing debt. The best balance transfer credit cards can give you a break from interest charges for as long as 24 months, and attractive offers are accessible to individuals with fair credit or better. A prolonged 0 percent introductory period can yield significant savings on interest, helping you get out of debt faster.
- Improve your budgeting and saving efforts. There are several good budgeting apps available to consumers for free or at a low cost. Taking ownership of your budget can help you free up some room for emergency fund contributions and debt payments so you can get out of debt and stay there.
- Use a rewards card for everyday spending. You can save 1 percent to 2 percent or more on every purchase with the right rewards card. You might also save a couple hundred dollars with an initial bonus. And if you plan to pay the bill in full monthly, the interest rate won’t matter.
- Work to improve your credit score. People with higher credit scores tend to pay lower interest rates. For example, the average APR among credit cards for people with fair credit is 26.65 percent, while the average for people with excellent credit is 17.11 percent, according to WalletHub’s database of 1,500-plus credit card offers. Having good or excellent credit also makes it easier to get credit cards with a 0 percent introductory APR.
Credit card debt can seem overwhelming, but tips like these can help reduce stress. In addition, many people report consumer credit counseling has helped them.
Choose the National Foundation for Credit Counseling for help rather than a debt relief company. Many of these companies are scams, according to AARP, a senior advocacy group.
