Credit Card Debt Falls By $60 Billion In First Quarter, But WalletHub Sees Rebound Ahead
By CU Today Staff —
MIAMI--Americans paid down approximately $60 billion in credit card debt during the first quarter of 2026, according to WalletHub’s analysis of the latest Federal Reserve consumer credit data, marking a larger seasonal decline than the same period a year earlier.
The reduction was roughly 6% greater than the debt paydown recorded during the first quarter of 2025.
Despite persistent concerns about household finances, overall credit card balances remain below historic highs. After adjusting for inflation, total credit card debt stood at about $1.35 trillion at the end of the first quarter, roughly 14% below its record peak. The average household carried approximately $11,153 in credit card debt, also adjusted for inflation, which is $2,263 below the all-time high.
WalletHub cautioned that the first-quarter decline follows a familiar pattern rather than signaling a major shift in consumer behavior. Consumers typically reduce balances after the holiday spending season before gradually adding debt back throughout the year. Preliminary April data showed credit card debt was essentially flat year over year, declining just 0.03% from April 2025 levels and remaining about 9% below the inflation-adjusted record for the month.
Looking ahead, WalletHub projects that total credit card debt will increase by approximately $60 billion during 2026.
“A big reduction in credit card debt to start the year is way better than the alternative, of course, but it’s also the norm and not necessarily a sign of newfound consumer discipline,” said John Kiernan, editor at WalletHub, who noted that meaningful improvement would require debt reductions extending beyond the first quarter.
Originally reported by CU Today.