A growing share of Americans are falling behind on their credit card payments, with new data showing nearly 40% of adults are unable to pay off their balances in full each month.
The figures, drawn from a March 2026 analysis by The Century Foundation using data from the Consumer Financial Protection Bureau and the Federal Reserve, highlight the extent of financial strain facing households during Donald Trump’s presidency.
The report estimates that about 111 million Americans are carrying month-to-month credit card debt, a sign that many are unable to cover routine expenses without borrowing.
At the same time, total credit card debt has surged to record levels, reaching roughly $1.27 trillion to $1.28 trillion by the end of 2025, according to data from the Federal Reserve Bank of New York.
Record Debt Meets Everyday Strain
The rising debt burden cuts across age groups, income levels, and educational backgrounds. Surveys in 2026 indicate that more than half of Americans in both Generation X and Millennial age brackets carry balances from month to month.
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Even among older Americans, often assumed to be more financially stable, over four in ten report the same challenge.
Younger adults are not immune. Around 40% of Gen Z credit card holders also carry balances, underscoring how early financial pressure is taking hold.
The data also reveals disparities in how debt is experienced. While White and Asian households tend to hold higher average balances, Black, Latino and Native American consumers are more likely to rely heavily on their available credit and make only minimum payments.
Lower-income households remain the most exposed, accounting for a significant portion of revolving debt nationwide.
Financial pressure is no longer confined to traditionally vulnerable groups. Separate findings show that a growing number of middle-class Americans, including those with college and postgraduate degrees, are increasingly dependent on credit cards to bridge gaps between income and rising living costs.
Political Debate Intensifies
The findings have fueled criticism of the economic climate under President Trump, particularly as many households continue to grapple with the lingering effects of inflation.
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Although inflation has slowed compared to its pandemic-era peak, prices remain significantly higher than they were five years ago, stretching household budgets.
Trump has previously downplayed concerns about affordability, describing them as overstated by political opponents. However, the latest data paints a more complicated picture, with millions of Americans relying on credit to cover essentials such as food, housing, and childcare.
Financial counselors point to a combination of factors behind the surge in debt: elevated prices, slower wage growth, and higher credit card interest rates. As borrowing costs rise, carrying a balance has become increasingly expensive, making it harder for households to pay down their debt.
Household debt overall, including mortgages, auto loans, and student loans, has also climbed to high levels, adding another layer of pressure.
