NEW YORK—Credit card delinquency rates remained elevated in the first quarter of 2026, even as overall card balances declined from the holiday spending season, according to newly released data from the Federal Reserve Bank of New York.
The New York Fed reported that aggregate household debt increased by $18 billion during the first quarter to a record $18.8 trillion, while credit card balances fell by $25 billion to $1.25 trillion. Despite the seasonal decline in balances, delinquency rates on credit card debt showed little improvement, underscoring continued financial stress among many households, the NY Fed said.
“Aggregate household debt levels rose slightly, with modest increases in most debt types offsetting a seasonal decline in credit card balances,” Daniel Mangrum, a research economist at the New York Fed, said in a statement accompanying the report. The Fed said delinquency transition rates were generally stable during the quarter.
Nearly 5% of All Debt in Some Stage of Delinquency
According to the New York Fed’s Quarterly Report on Household Debt and Credit, 4.8% of all outstanding household debt was in some stage of delinquency during the first quarter, unchanged from the prior quarter. Transitions into early delinquency on credit cards edged down slightly, falling from an annualized rate of 8.7% to 8.6%, while transitions into serious delinquency remained largely unchanged.
The report comes as credit card debt remains near record levels nationally. While balances declined from the fourth quarter, Americans still owed approximately $1.25 trillion on their credit cards at the end of March, making credit cards one of the largest categories of consumer debt outside mortgages.
Separate Federal Reserve data show the delinquency rate on credit card loans held by commercial banks stood at 2.92% during the first quarter, down slightly from 2.94% in the previous quarter and 3.06% one year earlier.
Financial Pressures
However, other measures suggest many consumers continue to face financial pressure. A recent Wall Street Journal analysis, citing New York Fed data, reported that 90-day-plus credit card delinquencies reached their highest levels in roughly 15 years during the first quarter as consumers grappled with elevated borrowing costs and persistent inflation.
The New York Fed noted that delinquency trends varied by debt type, including:
- Mortgage balances increased by $21 billion to $13.19 trillion
- Home equity lines of credit rose by $12 billion to $446 billion.
- Auto loan balances climbed by $18 billion to $1.69 trillion
- Student loan balances were essentially unchanged at $1.66 trillion. Student loan delinquencies, meanwhile, continued to rise following the resumption of repayment reporting after pandemic-era relief programs ended.
Strain on Lower-Income Households
Analysts said the data point to a consumer sector that remains broadly resilient but increasingly divided. While aggregate delinquency rates have stabilized, many lower-income households continue to struggle with debt repayment, rising living costs and reduced financial cushions. Recent New York Fed research also found signs of growing financial strain among vulnerable households, including increased food insecurity and greater reliance on savings to meet basic expenses.
