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Growing credit card balances are a reality for many Americans in 2026. 

Since the second quarter of 2025, U.S. credit card balances have increased from $1.21 trillion to $1.26 trillion, according to the New York Fed's Household Debt and Credit Report. Experian data shows average consumer credit card balances are also up slightly, from $6,618 in 2025 to $6,659 today. 

But debt doesn't look the same for everyone. 

In many ways, today's credit card debt story mirrors the divide associated with the K-shaped economy: Higher-income consumers are more willing to carry a balance to fund their goals, while lower-income consumers may be accumulating debt out of necessity or unable to access credit at all.

"If you have good credit and a good income, credit's flowing, there's a lot of demand for new customers, there's good sign-up bonuses, the world is your oyster," Ted Rossman, principal consumer finance analyst for Money Management International, told Yahoo Finance. "But then, if you have a lower credit score, or if you have a high debt income ratio, that's where we're seeing more of the cutbacks."

Despite overall higher balances, average credit card debt can vary depending on where you live.

The states with the highest levels of credit card debt, according to LendingTree data from the first quarter of 2026, are New Jersey ($9,733), Connecticut ($9,645), and the District of Columbia ($9,511). Those are also among the states with the highest average incomes and cost of living in the U.S.

It's not surprising that those states top the list, Matt Schulz, chief consumer finance analyst at LendingTree, told Yahoo Finance. "It doesn't entirely mean that those folks are struggling more or anything like that. A lot of it just has to do with the credit that they have available to them, giving them a lot of runway to run up debt." 

In order to take on $10,000 in credit card debt, he said, you have to be able to access $10,000 in credit. "So you would have to have probably a pretty good credit score and probably a pretty significant income."

LendingTree's data is based on anonymized credit reports from its users, but different methodologies can result in different averages. For example, Experian recently published its own average credit card debt data, which found Alaska had the highest average ($7,760), followed closely by the District of Columbia ($7,740). Experian's averages are based on a sampling of its consumer credit database. 

Though it has different states at the top, Experian's report, too, calls out "higher-cost and higher-income states like California, Connecticut, Texas, and Virginia" as having higher-than-the-national-average debt. 

By contrast, LendingTree's report showed states like West Virginia ($4,847) and Mississippi ($5,005) with the lowest average balances. In West Virginia, credit card debt decreased by 15% year over year, the largest drop of any state. New Mexico also reduced its average debt by 11.5%.

In some cases, "people in these states are buckling down in a challenging economy and paying off their debt to help them manage things a little bit better," Schulz said.

But many people living in those states are also on the opposite side of the K-shaped economy in terms of income, cost of living, and more.

"A lot of the states at the bottom of this list in terms of where we've seen the decrease in debt are among the states where, often, credit scores are among the lowest," Schulz said. Because credit card issuers may be more likely to close somebody's card or reduce their available credit if they're struggling financially, these states' debt balances may be falling because they're losing access to credit.   

"In a challenging economic time … the people who they are going to tighten the reins on most are people with low credit scores, less perfect track records, that sort of thing." 

Total credit card balances in the U.S. today sit around $1.26 trillion — not quite as high as the all-time peak in late 2025, but only slightly lower. And that's after a steady incline for the past several years. At the start of 2021, the total was a much lower $770 billion.

Balances may not be growing as quickly today, but that existing debt still lingers.

"Even though the rate of change has not been quite as strong lately, the cumulative effect has really stacked up on a lot of households," Rossman said. 

If you're managing credit card debt, here are some actions you can take to save today, no matter your credit score or financial situation:

Ask for a lower rate: The first thing you can do is as simple as asking your credit card issuer for a lower interest rate. It may not always work, but it's one way to quickly reduce your interest charges. "Oftentimes, it's just about making that phone call and asking," Schulz said.

0% APR balance transfer: If you have good credit and can qualify, a balance transfer credit card with a 0% APR can be a great way to pay down debt. Some of the best balance transfer cards today offer up to 21 months without interest. 

Low-interest personal loan: Today's top personal loans offer interest rates in the single digits, which are much lower than a credit card with an APR of 20% or more. You'll need great credit to qualify for top rates, though, and you should also make sure you avoid taking on a balance again while you pay down the old debt — or you may end up where you started. 

Credit counseling: If you have a very large debt balance or don't have the credit to qualify for other options, you may want to consider a debt management plan with a credit counselor. You'll likely have to close your credit cards, but these plans have much lower fees and don't come with the credit risks of debt settlement or debt relief options. According to Rossman, working with a nonprofit on a debt management plan can also help you get advice for budgeting and support to help you stay out of debt long term.

The most important thing you can do is get started sooner rather than later. The less interest you let grow on your balance, the more money and time you'll save yourself. 

"Get over that initial hurdle and really try to make progress," Rossman said. "It will pay dividends for your entire financial life."

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