Credit Card Debt Hits $1.37 Trillion With Other Revolving Loans, Fed Says

Americans owed nearly $1.37 trillion in credit card and other revolving debt in September 2026, according to new Federal Reserve figures released Friday, November 6. The balance rose by approximately $16.3 billion from August, reversing the previous month’s decline and highlighting the substantial amount of consumer debt outstanding across the United States. The increase comes as credit card borrowing remains expensive for households carrying balances from month to month.

The Federal Reserve’s latest consumer credit report shows revolving balances reached $1.3685 trillion in September, compared with $1.3522 trillion in August. Revolving credit expanded at a seasonally adjusted annual rate of 14.5% during September, following a 4.4% annualized decline in August. These figures cover revolving consumer credit, which consists primarily of credit card debt, rather than credit cards alone.

Borrowing Rebounds in September

September’s increase was particularly notable because revolving balances had fallen during August. The latest figures show that the outstanding balance rose about 1.2% in a single month, although the Fed’s annualized growth measure was considerably higher at 14.5%. That annualized figure describes the pace of borrowing during September, not the actual percentage increase over the month.

The balance was also approximately $44.2 billion higher than the $1.3243 trillion recorded at the end of 2025. The increase indicates that revolving debt has continued expanding over the first nine months of 2026, despite fluctuations between individual months. However, the aggregate data cannot establish whether households borrowed more to cover necessities, finance discretionary purchases, or manage temporary expenses.

Credit Card Interest Remains High

The amount Americans owe becomes particularly important when combined with the interest rates charged on outstanding balances. The Federal Reserve’s credit card data show that commercial bank credit card accounts assessed interest carried an average annual rate of 22.36% in the third quarter of 2026. The average rate across all surveyed credit card accounts was 21.19%, including accounts that were not necessarily paying interest.

For someone maintaining a $5,000 balance at a 22.36% annual percentage rate, interest would amount to roughly $93 in one month under a simplified calculation with no payments or additional purchases. Actual charges depend on daily balances, payment timing, and the card issuer’s interest calculation. This illustrates why the cost of carrying debt can remain substantial even when a household stops making new purchases.

The Consumer Financial Protection Bureau explains that many card issuers calculate interest using average daily balances. Borrowers who maintain revolving balances may therefore continue accumulating interest until those balances are repaid. Paying a statement balance in full by the due date can generally avoid interest on purchases when the account’s grace-period requirements are satisfied.

Total Consumer Debt Climbs

The increase was not limited to revolving balances. Total outstanding consumer credit reached approximately $5.224 trillion in September, up from $5.197 trillion in August, according to the Fed’s seasonally adjusted figures. The broader category includes nonrevolving borrowing such as auto loans, student loans, and other installment credit, but excludes mortgages and certain other forms of debt.

Nonrevolving consumer credit reached approximately $3.856 trillion in September, rising from $3.844 trillion in August. Its annualized growth rate was 3.6%, substantially slower than the 14.5% rate recorded for revolving credit during the month. Overall consumer credit increased at a 6.4% annualized rate in September.

The distinction matters because installment loans and revolving credit operate differently. Installment borrowing generally involves scheduled repayment over an established period, while revolving accounts allow consumers to borrow repeatedly within their credit limits. Readers following broader banking developments should consider both borrowing costs and the type of credit when evaluating changes in household debt.

What the Numbers Reveal

September’s borrowing increase shows that Americans collectively carried more revolving debt at the end of the month, but it does not prove that consumers are experiencing worsening financial distress. Outstanding balances can rise when consumers increase spending, carry debt for longer, or make smaller repayments relative to their purchases. The Fed’s aggregate figures do not identify which of those factors was most responsible for the September increase.

The figures also cannot establish how many Americans are struggling to make payments. A national revolving-credit balance is not the same as the amount of debt accruing interest, and it does not reveal the distribution of balances among borrowers. Measures such as delinquency rates, repayment behavior, and household income would provide additional evidence about consumers’ financial condition.

What Borrowers Should Consider

For households carrying credit card balances, the immediate concern is the interest charged on unpaid debt rather than the national borrowing total. Borrowers can review their annual percentage rates, monthly statements, and repayment options to understand how much their balances cost. Paying more than the minimum required amount can reduce future interest charges and shorten repayment periods.

The CFPB’s credit card guidance also encourages consumers to understand their card terms, avoid unnecessarily expensive borrowing, and make payments on time. Those considerations become especially relevant when balances accumulate at interest rates exceeding 20%. The appropriate repayment approach depends on each household’s income, expenses, borrowing terms, and financial circumstances.

The Federal Reserve’s next scheduled consumer credit release is December 7, 2026, when October borrowing figures are expected to provide a clearer picture of whether September’s revolving-credit increase continued. The September figures are preliminary and remain subject to revision. For now, the latest data establish that Americans entered the final quarter of 2026 with nearly $1.37 trillion in outstanding revolving consumer credit and persistently high borrowing costs for credit card users paying interest.