Report: U.S. Credit Card Debt Expected To Climb $100 Billion in 2026
By CU Today Staff —
MIAMI--Americans are projected to add another $100 billion in credit card debt during 2026, pushing total outstanding balances to nearly $1.4 trillion, according to a new analysis from WalletHub that examined how long it would take borrowers in each state to repay median credit card balances.
Using data from TransUnion, the Federal Reserve and the U.S. Census Bureau, WalletHub ranked states based on the sustainability of credit card debt by measuring median balances, estimated payoff timelines and interest costs. The District of Columbia ranked as having the nation's least sustainable credit card debt, followed by Alaska and Vermont, while West Virginia, Montana and Arkansas ranked among the most sustainable.
WalletHub said repayment behavior—not just debt levels—played a significant role in the rankings. Vermont, for example, ranked third despite having only the nation's 28th-highest median credit card balance because relatively low monthly payments extend payoff periods and increase interest costs.
“Looking at the median credit card debt in a state can give you a good idea of whether people are struggling or doing well compared to people in other states, but it’s also important to look at how much residents put toward paying their debts off each month. Low average payments lead to long payoff timelines, which in turn lead to high amounts of interest accrued. For example, Vermont’s median credit card debt is relatively low, but it ranks as the state with the third-biggest debt problem due to low average monthly payments,” said Chip Lupo, WalletHub analyst.
The findings come as issuers continue to monitor elevated revolving balances and payment trends amid persistent economic uncertainty. WalletHub's analysis suggests that payment behavior may be as important as outstanding balances in determining long-term credit risk across different markets.
Originally reported by CU Today.