Income Is Up 22%--But Credit Card Debt Has Surged 54%, New Consolidated Credit Data Shows
April is Financial Literacy Month and this year the Focus is the Growing Gap Between Earnings and Debt—and Its Impact on American Households
FORT LAUDERDALE, Fla., March 31, 2026 /PRNewswire/ -- During Financial Literacy Month, new data from Consolidated Credit 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.
According to Consolidated Credit, one of the nation's largest and oldest credit counseling agencies, consumers enrolling in its Debt Management Program 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.
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—a nearly 10-percentage-point increase.
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.
"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 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.
"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."
Financial Literacy Month: Time to Take Control
April is Financial Literacy Month, serving as a critical reminder that managing money today requires more than just budgeting—it requires understanding how to navigate debt, build resilience, and regain control.
To support consumers, Consolidated Credit is offering a free educational resource: The 2026 Money Confidence Roadmap https://www.consolidatedcredit.org/library/2026-money-confidence-roadmap/ The roadmap provides a clear, step-by-step quarterly guide to:
- Reducing financial stress
- Improving credit
- Making debt feel more manageable
- 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." Consumers can receive a free budget and debt analysis from certified counseling by calling 800-SAME-ME-2.
About Consolidated Credit
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.
SOURCE Consolidated Credit
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