PHILADELPHIA — More U.S. consumers are keeping up with their credit card payments even as overall balances and spending continue to climb, according to data released by the Federal Reserve Bank of Philadelphia.
The share of credit card balances that were past due and the rate of charge-offs both declined in the third quarter of 2025 compared with the same period a year earlier, the Philadelphia Fed said in its quarterly credit card and mortgage survey released last week.
Data for the fourth quarter were not yet available.
At the same time, total spending on credit card accounts continued a steady rise that began early in the COVID-19 pandemic, the data showed.
“Taken together with broader economic indicators, the data present a mixed picture: Consumers are navigating economic uncertainty, yet credit card performance continues to improve,” a Philadelphia Fed spokesperson said in a statement.
Modest Improvements
According to the Philadelphia Fed, the improvements were modest.
Among the findings:
- The percentage of balances that were 30 days or more past due fell to 3.29% in the third quarter, down from 3.54% a year earlier.
- Balances that were at least 90 days past due declined to 1.62%, compared with 1.75% in the third quarter of 2024.
- Total U.S. credit card purchase volume rose to $945.1 billion in the third quarter of 2025, up from $889.1 billion in the same period a year earlier.
- The net charge-off rate dropped to 4.99% in the third quarter, compared with 5.57% a year earlier. The rate was also lower than the 6.02% recorded in the first quarter of 2025.
- Delinquent balances edged up slightly from the second quarter of 2025, though overall delinquency rates and balances remain well above pre-pandemic levels.
- Spending growth since the pandemic has been sharp. Total U.S. credit card purchase volume stood at $443.9 billion in the second quarter of 2020, less than half the level reached in the third quarter of 2025, according to the Philadelphia Fed.
