Credit card balances are on the rise as of mid-2026, according to a new quarterly report on household debt from the Federal Reserve Bank of New York released Tuesday.

Balances rose by $21 billion in the second quarter to a collective $1.26 trillion — nearing last year's all-time high of $1.28 trillion. The total is up 1.7% from the previous quarter.

The percentage of credit card balances in "late-stage delinquency," or over 90 days past due on payments, jumped to 12.8% from 7.6% in the second quarter, "prompting concerns that Americans are falling behind on their debt payments at rates not seen since the Great Recession," the New York Fed researchers said in a corresponding blog post.

However, "this is a lagging indicator and reflects past charge-off debts that are sticking around on credit reports," the New York Fed researchers said on a press call Tuesday.

At the same time, new credit card delinquencies have held steady — although they "remain at elevated levels, a trend we'll continue to monitor," the New York Fed researchers found, with 6.97% of balances transitioning to delinquency over the last year.

"To us it reflects this K-shaped economy," the New York Fed researchers said. "There are a lot of households that live paycheck to paycheck."

About 175 million Americans hold credit cards. Although some pay their balances in full each month, roughly 60% carry revolving debt, leaving them more financially vulnerable, according to the New York Fed.

"The rise in credit card debt, HELOC debt and other debts, which include personal loans, clearly show that people are looking for ways to extend their budget in the face of stubborn inflation," said Matt Schulz, chief credit analyst at LendingTree. Home equity lines of credit, or HELOCs, and home equity loans have accounted for a larger share of borrowing this year, other reports also show.

More than half, 55%, of consumers carry credit card balances to cover essential expenses, according to a separate report by debt management company Achieve.

"Short-term debts often start off as a temporary stop-gap solution to household budget gaps," Achieve's co-founder and co-CEO Brad Stroh said in a statement. However, "with elevated costs of living and compounding interest charges, these debts can quickly create sustained pressure on household balance sheets and budgets," he said.

Among respondents in Achieve's June survey of 2,000 consumers, 56% of borrowers said it would take six months or longer to pay off all their credit card debt.