US credit card debt hits record high as household borrowing climbs

American consumers ended the year with a new record in credit card borrowing, as balances rose sharply in the final quarter.

Data from the Federal Reserve Bank of New York shows credit card debt reached $1.28 trillion by the end of the fourth quarter. That marks a $44 billion increase over the previous three months.

The latest figures underline how credit cards are playing a bigger role in household finances. As living costs remain elevated, many families appear to be leaning more heavily on revolving credit.

The data forms part of the bank’s regular review of household debt trends across the US economy.

Quarterly jump in balances

The fourth-quarter rise of $44 billion pushed total credit card balances to their highest level on record. According to the Federal Reserve Bank of New York, this is the largest amount of outstanding credit card debt ever recorded for American consumers.

The increase came over a three-month period, signalling continued growth in borrowing towards the end of the year.

Credit cards, which allow consumers to carry balances from month to month, have become a key source of short-term financing for many households.

The new total of $1.28 trillion reflects the cumulative amount owed on credit cards nationwide at the close of the quarter.

Annual growth remains steady

On a year-over-year basis, balances were up 5.5% compared with the same period in 2024.

This annual rise indicates that credit card borrowing has continued to expand even as interest rates have remained relatively high.

The 5.5% increase highlights the sustained pace of growth in revolving debt over the past 12 months.

While quarterly changes can reflect seasonal spending patterns, the annual comparison offers a broader view of borrowing behaviour.

The data suggests that credit card usage has remained resilient despite tighter financial conditions.

Part of wider household debt picture

Credit card debt is one component of overall household borrowing tracked by federal banking authorities.

The Federal Reserve Bank of New York publishes quarterly updates as part of its household debt and credit report.

These reports monitor several categories of consumer debt, including mortgages, auto loans, and student loans, alongside credit card balances.

Together, these categories form total household debt in the US.

By tracking each segment, the central bank’s regional arm provides a detailed snapshot of consumer borrowing trends.

The credit card figures, in particular, offer insight into short-term spending patterns and financial strain among households.

The latest report confirms that credit card balances have reached a new peak, both in absolute terms and in the context of historical data.

As part of its ongoing economic monitoring activities, the Federal Reserve Bank of New York will continue to assess how consumer debt evolves in the coming quarters.