Data from Consolidated Credit shows a concerning financial trend where credit card debt is growing at more than twice the rate of income increases among consumers enrolled in its Debt Management Program. Since 2016, participants have experienced a 22% rise in income, but their credit card debt has surged by 54% during the same timeframe.
This growing disparity between earnings and debt obligations highlights increasing financial pressure on American families. The situation is exacerbated by significantly higher borrowing costs, with average credit card interest rates jumping from 12.35% in 2016 to 19.58% today, and many consumers facing 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 findings align with broader national data from the Federal Reserve Bank of New York, which reports 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 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 indicate 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."
In recognition of Financial Literacy Month this April, Consolidated Credit is offering a free educational resource: The 2026 Money Confidence Roadmap. This guide provides a step-by-step quarterly approach to reducing financial stress, improving credit, making debt 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." The data suggests that despite income gains, households are increasingly vulnerable to economic shocks as debt obligations consume a growing portion of their earnings.
