New York Fed's quarterly report on household debt, released on Tuesday, showed that U.S. credit card balances increased by $21 billion in the middle of the second quarter of 2026, reaching a total of $1.26 trillion, a 1.7% increase from the previous quarter, nearing last year's historical high of $1.28 trillion. The report noted that the proportion of credit card balances in "severe delinquency" (90 days or more overdue) jumped from 7.6% in the Q1 to 12.8%, raising concerns that the rate at which Americans are falling behind on their debts has reached levels not seen since the Great Recession. Researchers attributed this to the reality that many households are struggling to make ends meet in a "K-shaped economy," and pointed out that stubborn inflation is prompting people to extend their budgets through credit cards, home equity lines of credit (HELOCs), and personal loans.