Income Is Up 22%–But Credit Card Debt Has Surged 54%, New Consolidated Credit Data Shows<\/h1>\n
PR Newswire<\/p>\n
FORT LAUDERDALE, Fla., March 31, 2026<\/p>\n<\/p><\/div>\n
April is Financial Literacy Month and this year the Focus is the Growing Gap Between Earnings and Debt\u2014and Its Impact on American Households<\/p>\n
FORT LAUDERDALE, Fla.<\/span>, March 31, 2026<\/span> \/PRNewswire-HISPANIC PR WIRE\/ — During Financial Literacy Month, new data from\u00a0Consolidated Credit<\/a> reveals a troubling trend: while Americans are earning more, their credit card debt is rising at a much faster pace, putting increased pressure on household finances nationwide.<\/p>\n According to Consolidated Credit, one of the nation’s largest and oldest credit counseling agencies, consumers enrolling in its Debt Management Program<\/a> have seen their income rise by 22% since 2016. However, during that same period, their credit card balances have surged by 54%, more than doubling the pace of income growth.<\/p>\n 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\u2014a nearly 10-percentage-point increase.<\/p>\n 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.<\/p>\n “People are feeling it financially and they’re also feeling it mentally and emotionally, too,” says April Lewis-Parks<\/a>, 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.”<\/p>\n 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.<\/p>\n “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.”<\/p>\n Financial Literacy Month: Time to Take Control<\/b><\/p>\n April is Financial Literacy Month<\/a>, serving as a critical reminder that managing money today requires more than just budgeting\u2014it requires understanding how to navigate debt, build resilience, and regain control.<\/p>\n To support consumers, Consolidated Credit is offering a free educational resource: The 2026 Money Confidence Roadmap <\/b>https:\/\/www.consolidatedcredit.org\/library\/2026-money-confidence-roadmap\/<\/a> The roadmap provides a clear, step-by-step quarterly guide to:<\/p>\n “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\u2014it’s to take control, make a plan, and start turning things around today.” Consumers can receive a free budget and debt analysis from certified counseling by calling 800-SAME-ME-2.<\/p>\n About Consolidated Credit<\/b><\/p>\n Consolidated Credit is one of the nation’s largest nonprofit credit counseling organizations, helping individuals and families overcome debt and achieve financial stability through education, counseling, and debt management programs.<\/p>\n![\"When](\"https:\/\/mma.prnewswire.com\/media\/2860005\/consolidatedcredit_logo_Logo.jpg\" "\\"When"){kind=logo}
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