New data from Consolidated Credit, released in recognition of Financial Literacy Month, reveals a troubling trend: credit card debt is growing more than twice as fast as income. According to the nonprofit credit counseling agency, consumers enrolled in its Debt Management Program have seen a 22% increase in income since 2016, but their credit card debt has jumped by 54% over the same period. This disparity underscores escalating financial pressure on American families.
The cost of borrowing has also risen sharply. The average credit card interest rate has climbed from 12.35% in 2016 to 19.58% today, with many consumers facing APRs as high as 27%. Consequently, the share of income required to manage credit card debt has increased from 36.72% in 2016 to 45.91% by the end of 2025—a nearly 10-percentage-point rise.
These findings align with national data from the Federal Reserve Bank of New York, which shows total U.S. credit card debt has reached a record $1.28 trillion, contributing to overall household debt of $18.8 trillion. Credit card delinquency rates have also risen sharply, particularly among lower-income households, indicating growing difficulty in meeting payment obligations.
“People are feeling it financially and they’re also feeling it mentally and emotionally, too,” said 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 indicate over 100 million consumers cannot pay their credit card balances in full each month, while everyday expenses like groceries remain a major source of stress across income levels.
Lewis-Parks added: “The past 10 years have been a rollercoaster ride for the American economy, but it’s been mostly downhill for the average consumer. 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.”
In response, Consolidated Credit is offering a free educational resource, the 2026 Money Confidence Roadmap, which provides a quarterly guide to reducing financial stress, improving credit, making debt more manageable, and building long-term financial confidence. “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,” Lewis-Parks said.
