New findings from Consolidated Credit reveal a concerning financial trend impacting households across the United States: while incomes have steadily increased, credit card debt is rising at a significantly faster rate. Data from the credit counseling agency shows that consumers enrolled in its Debt Management Program have experienced a 22% increase in income since 2016, but during the same period, their credit card debt has surged by 54%—more than twice the rate of income growth.
This growing disparity underscores the increasing financial pressure facing American families, as higher earnings are being outpaced by escalating debt obligations. At the same time, borrowing has become significantly more expensive. The average credit card interest rate has jumped from 12.35% in 2016 to 19.58% today, with many people having APRs up to 27%. As a result, the share of income needed to manage credit card debt has climbed from 36.72% in 2016 to 45.91% by the end of 2025—a nearly 10-percentage-point increase.
These trends align with broader national data. According to the Federal Reserve Bank of New York, total U.S. credit card debt has reached a record $1.28 trillion, contributing to overall household debt of $18.8 trillion. At the same time, credit card delinquency rates have risen sharply in recent years, particularly among lower-income households, signaling growing difficulty in keeping up with payments.
"People are feeling it financially and they’re also feeling it mentally and emotionally, too," says April Lewis-Parks, Director of Financial Education at Consolidated Credit. "People are under stress and telling us that they are suffering from anxiety and sleepless nights tied to money." Recent reports show that over 100 million consumers are unable to pay their credit card balances in full each month, while everyday expenses like groceries continue to be a major source of stress across income levels.
"The past 10 years have been a rollercoaster ride for the American economy, but it’s been mostly downhill for the average consumer," Lewis-Parks adds. "With global instability driving up costs and inflation pressures continuing, this could be the toughest time yet for household budgets. Many families have already weathered a recession, a pandemic, and record inflation, this may be the tipping point."
To support consumers, Consolidated Credit is offering a free educational resource: The 2026 Money Confidence Roadmap. The roadmap provides a clear, step-by-step quarterly guide to reducing financial stress, improving credit, making debt feel more manageable, and building long-term financial confidence. "Americans have weathered a lot, but this moment demands action," Lewis-Parks says. "If debt is rising faster than income, the solution is not to wait—it’s to take control, make a plan, and start turning things around today."
