US revolving credit rises to $1.351tn in June 2026
Federal Reserve data show a June rebound in revolving credit, while a separate survey finds strained households cutting discretionary spending.
By Rafael Ortiz · Fintech Correspondent
· 3 min read
US revolving credit in June 2026 rose to a seasonally adjusted $1.351tn, as the category increased at a 6.0% annual rate after contracting at a 4.7% rate in May, according to the Federal Reserve. The increase came as PYMNTS Intelligence reported that 53% of paycheck-to-paycheck consumers struggling to pay bills had reduced discretionary spending over the previous year.
The Federal Reserve's G.19 release, published on August 7 and covering June, showed total consumer credit outstanding of $5.167tn. Total consumer credit increased at a 3.3% annual rate in June, following a 0.3% decline in May.
The $1.351tn figure should not be read as a direct measure of all US credit-card debt. It is the Fed's revolving-credit series, a category in which credit-card loans make up the majority but which also includes products such as prearranged overdraft plans. PYMNTS characterized the June level as roughly $1bn below its October 2024 peak.
What does US revolving credit in June 2026 measure?
The G.19 report covers personal borrowing for household, family and other consumer expenditures, excluding loans secured by real estate. Revolving plans let consumers draw up to an agreed limit and repay over one or more instalments. Nonrevolving credit includes, among other products, motor-vehicle and education loans.
That distinction matters when comparing data sets. LendingTree, citing Federal Reserve Bank of New York household-debt data, put credit-card balances at $1.252tn in the first quarter of 2026, after $1.277tn in the fourth quarter of 2025. Those figures use a different series, definition and reporting period from the Federal Reserve Board's June revolving-credit measure, so they should not be treated as interchangeable.
Borrowing costs rose for accounts carrying interest
The Fed reported that the average commercial-bank rate across all credit-card accounts was 20.94% in the second quarter. For accounts assessed interest, the rate was 22.15%, up from 21.52% in the first quarter. The latter figure is more directly relevant to cardholders who carry balances that incur finance charges.
Revolving credit increased at a 3.9% annual rate over the second quarter, while nonrevolving credit grew at a 2.1% rate. The monthly rebound therefore followed uneven movements in the first two months of the quarter, rather than a uniform rise through the period.
What do the spending data show?
PYMNTS Intelligence said its survey found that 53% of paycheck-to-paycheck consumers struggling with bills had cut spending on dining, entertainment, travel and other nonessentials during the past year. It said 23% in that group had increased such spending.
The survey and the Fed release describe different populations, time frames and measures. The G.19 data do not identify what borrowers purchased or which income groups added balances. The figures can therefore indicate budget pressure without establishing that reduced discretionary spending caused the June increase in revolving credit.
This story draws on original reporting from PYMNTS.