US credit card debt hits $1.26 trillion in Q2, up $21 billion from prior quarter

American credit card debt rose $21 billion in Q2 2025, reaching $1.26 trillion and approaching the all-time record.

American credit card balances swelled by $21 billion in the second quarter of this year, pushing total credit card debt to $1.26 trillion — within striking distance of the all-time record set in 2024. The figures come from newly released Federal Reserve data tracking household debt across the United States. While credit card balances climbed, not all consumer debt moved in the same direction. Mortgage and student loan balances saw a small decline during the same period, according to reporting alongside the Fed data, even as other debt categories posted increases. The $1.26 trillion figure represents the aggregate balance carried by American consumers on revolving credit accounts, a closely watched indicator of household financial stress and spending behavior. The prior record high was set in the preceding year, making the current level a near-match.

Why it matters

Credit card debt at record-approaching levels signals potential financial strain for millions of American households, particularly as interest rates on revolving credit remain elevated. The trend is a key indicator of consumer health and broader economic conditions.

What's next

Analysts and policymakers will watch whether Q3 data pushes balances past the prior all-time record, and whether delinquency rates rise alongside the growing debt load.

Key facts

• Total US credit card debt reached $1.26 trillion in Q2 of this year
• Credit card balances increased by $21 billion in the second quarter
• The current level is approaching the all-time record set in the prior year
• Mortgage and student loan balances posted a small decline in the same period
• Other debt categories outside mortgages and student loans also increased
• Data comes from a Federal Reserve household debt report

Bias & framing notes

Both sources reported the same core figures and framed the story similarly, emphasizing the proximity to the all-time record. The Guardian noted the mortgage and student loan decline more explicitly, while ABC News led more squarely on the credit card increase. Neither source provided meaningful context on interest rates, delinquency rates, or household income trends that would give the numbers deeper meaning.

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