WalletHub just analyzed new data released by the Federal Reserve and discovered that U.S. households had $1.33 trillion in credit card debt at the end of February 2026. That is a new record for the month in absolute terms, but it is 10% below the record when adjusted for inflation.
With the average credit card APR remaining extremely high, WalletHub projects that credit card debt will increase by $50 billion by the end of 2026. You can find additional tips and takeaways from WalletHub’s latest Credit Card Debt Study below.
- Early Q1 Returns: Total credit card debt as of February 2026 was roughly $1.33 trillion, which is around 10% below the record high for the month when adjusting for inflation.
- Household Debt Has Some Breathing Room: The average household credit card balance was around $11,036 at the end of February 2026. That’s $2,128 below the record high.
- Debt-to-Deposit Ratio: The ratio between total credit card debt and deposits was 7.0% in February 2026 – 61% below the peak registered in Q4 2000. The lower this ratio is, the better.
- Interest Rates Remain High: The average person with credit card debt pays interest at an annual rate of 21.52%
- 2026 Projection: WalletHub projects that total credit card debt will rise by $50 billion during 2026.
“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. We aren’t going to get a break from inflated prices or high interest rates anytime soon, so people should plan accordingly. It’s never easy to cut spending, but that might be the only path for a lot of us.”
- John Kiernan, WalletHub Editor
5 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% 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. For example, WalletHub’s free budgeting tools can help you get organized, set up your budget, and analyze your performance. 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% to 2%+ 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%, while the average for people with excellent credit is 17.11%, according to WalletHub’s database of 1,500+ credit card offers. Having good or excellent credit also makes it easier to get credit cards with a 0% introductory APR.
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