Credit card debt cooled in August, but serious delinquencies stay high

Americans pulled back on credit card borrowing in August, but more of them are falling seriously behind on the balances they already have. That's the mixed picture from new Federal Reserve data and the New York Fed's latest household debt figures.

What the new data shows

The Fed's consumer credit release for August, published October 7, showed revolving credit, which is mostly credit card debt, shrinking at a seasonally adjusted annual rate of 4.2%. Total revolving credit stood at about $1.35 trillion. In July, it had grown at a 2.5% annual rate.

At the same time, card interest stayed high. The average APR across all credit card accounts was 21.19% in August. For accounts actually charged interest, it was 22.36%.

The New York Fed's household debt report for the second quarter, the most recent available, put card balances at $1.26 trillion, up $21 billion from the first quarter and $54 billion from a year earlier.

Late payments: two measures, one message

Delinquency numbers can look contradictory depending on who measures them.

• Credit report data (New York Fed): 12.92% of credit card balances were 90 or more days past due at the end of June, down slightly from 13.12% in the first quarter, according to the report's data tables. The annualized flow of card balances into serious delinquency was 6.97%, about the same as 6.93% a year earlier.
• Lender data (Federal Reserve): the seasonally adjusted credit card delinquency rate was 2.85% in the second quarter of 2026, down from 2.91% in the first quarter.

The two are measured differently, so they don't contradict each other. The takeaway is that most cardholders are keeping up, but the ones who fall behind are carrying a lot of debt, and that share hasn't improved much.

Who is falling behind

The New York Fed's age breakdown shows strain at both ends. These are four-quarter rates of card balances newly becoming 90+ days late in the second quarter of 2026:

For borrowers 70 and older, 6.3% is the highest reading since the third quarter of 2011. That matters because retirees have fewer working years to pay down a balance that keeps compounding.

What it means for you

If you pay your card in full each month, none of this changes your costs. If you carry a balance, it's a reminder of how fast interest compounds. Say you owe $3,000 at an example 22% APR. That's roughly $55 in interest in the first month alone, before you touch the principal.

Lenders also watch these numbers. When late payments stay high, issuers tend to be more careful with approvals and credit limit increases, especially for applicants with thin or damaged credit.

What to do now

1. Set up autopay for at least the minimum. A late payment can end up on your credit report and hurt your score.
2. Attack the highest-APR balance first while paying minimums on the rest.
3. Call your card issuer early if you think you'll miss a payment. Hardship programs are easier to get before an account goes seriously past due.
4. Rebuilding after a late payment? Our guide to building credit covers secured cards and the habits that move your score.
5. Watch for the next data: the Fed's September consumer credit figures are due November 6.

Bottom line

Card borrowing cooled in August and the share of balances in serious delinquency edged down, but nearly 13% of card balances are still 90+ days late, and young adults and people over 70 are under the most pressure. If you carry a balance at today's rates, the plan that works is the plain one: autopay, highest rate first, and an early call to your issuer if trouble starts.