In America, credit cards are becoming an important part of people’s daily lives. People are using credit cards for everything from food to shopping and other essential expenses. But now this facility is becoming a huge debt burden for them. The situation is such that a large number of people are unable to pay their credit card bills on time. According to a recent report by the Federal Reserve Bank of New York, the total credit card balance of Americans in the third quarter of 2026 has reached a record $ 1.29 trillion, i.e. about 121.3 lakh crore rupees.
According to a New York Fed report, credit card balances in the third quarter were $22 billion, or about Rs. 2.06 lakh crore has increased. This is an increase of 1.7 percent compared to the previous quarter. At the same time, compared to a year ago, the total credit card balance has increased by $52 billion, or about Rs 4.88 lakh crore. However, these figures do not include the effect of inflation. This means that some of the increase in debt may also be due to rising prices of goods and services.
American households are burdened with other types of debt, not just credit cards. Total household debt, including mortgages, home loans, student loans and auto loans, rose to $334 billion in the third quarter, or about Rs. 31.4 lakh crore to a record 19.1 trillion dollars i.e. about Rs. 1,795.4 lakh crore has been reached. This is about 5 trillion dollars i.e. 470 lakh crore rupees more than the level before the start of Corona epidemic in 2019.
Most people in poor areas are unable to pay bills
Low-income families are being hit hardest by rising credit card debt. According to a separate report from the New York Fed, 10.3 percent of people living in the lowest-income areas have a credit card balance outstanding for more than 90 days. At the same time, the figure is only 4.4 percent in the richest areas. That means the rate of seriously delinquent credit card debt in poorer areas is more than double that in richer areas.
The report shows that the gap in credit card payment defaults between the richest and poorest areas has widened since 2022. Notably, payment delay rates across all income groups are still above pre-coronavirus levels. In such a situation, it is becoming difficult for low-income families to pay their credit card bills. Due to non-payment on time, they may face problems like extra fees and bad credit score. Besides, the interest burden on the loan also increases.
Debt pressure is also increasing on the youth
The impact of the increasing use of credit cards is also being seen on the youth. According to TransUnion’s third quarter report, the average credit card holder in the US has $6,678, or about Rs. 6.28 lakh is outstanding. At the same time, among borrowers under the age of 30, the largest number are those whose credit card loans are 90 days or more delinquent for the first time, according to a New York Fed report. This shows that the youth are also struggling with the pressure to repay the loan.
What is the burden of debt on the poor?
Some relaxation in default figures of payment
However, a relief news has also come out from the American credit card market. The rate of delinquent credit card debt fell to 6.9 percent in the third quarter. This means that the situation of some people who cannot pay on time has improved. But this rate is still well above the pre-pandemic level of 5.2 percent.
Meanwhile, the issue of inflation and domestic spending in the US is also politically important. Democrats have pledged to lower prices in the midterm elections. However, it will not be easy to provide real relief to people in their day-to-day expenses. Credit card delinquency and late payment statistics show that financial pressures in America are not the same for all households. Low-income families and youth are the most affected by this problem.
