---
title: Households Are Managing Their Debt by Leaning Harder on Credit Cards
description: The NFCC stress reading rose to 6.7 out of 10 in the second quarter, while Federal Reserve data put revolving credit at $1,351.1 billion in June.
author: Darie Nani (Editor-in-Chief)
updated: 2026-08-11T21:43:09.433Z
canonical: https://richdadmagazine.com/article/household-financial-stress-credit-cards-q2-2026
image: https://cdn.nanimediahouse.com/household-financial-stress-empty-bowl-140956.webp
categories: Money & Legacy
content_type: Analysis
region: United States
publication: Rich Dad Magazine
schema_type: Article
---

Household debt is being handled better and it does not feel like it. That is the gap in the second-quarter reading from the National Foundation for Credit Counseling, a nonprofit founded in 1951, whose Financial Stress Forecast has edged up again to 6.7 out of 10 from 6.6. The foundation expects the same 6.7 in the third quarter, which makes this less a bad quarter than a settled condition.

## Households Are Covering the Shortfall With Credit

The foundation's own debt measures have improved modestly over the past two quarters. What sits behind them has not. Households are keeping up with what they owe while their savings shrink and their room to manoeuvre narrows, and they are leaning more on credit to bridge the gap between what comes in and what goes out. Mike Croxson, the foundation's chief executive, says consumers are working hard to manage their debt but that stress remains stuck at unusually high levels.

> "For many households, the financial cushion isn't there when unexpected expenses occur."
> — Mike Croxson, Chief Executive, National Foundation for Credit Counseling

## Card Balances Grew Faster Than Other Borrowing Last Quarter

The Federal Reserve's consumer credit figures, published on 7 August, show where the borrowing is going. Revolving credit, which is mostly credit cards, [grew at an annual rate of 3.9% in the second quarter](https://www.federalreserve.gov/releases/g19/current/), against 2.6% for consumer credit as a whole. In dollars, revolving balances stood at $1,351.1 billion in June, up from $1,338.0 billion at the end of March.

The rate on those balances has not moved in the household's favour either. The Fed puts the average on credit card plans at commercial banks at 20.94%, and at 22.15% on accounts that were actually charged interest. A five-year new car loan averaged 7.14% over the same period.

## The Climb Started in 2021

The stress reading has not spiked so much as ground upward. From a post-pandemic low of 3.5 in 2021 it rose steadily before flattening out near where it sits now. The foundation puts that down to persistent inflation, higher borrowing costs and emergency savings that were never rebuilt. Its forecast is built to catch the pressure early, combining what its counsellors see in casework with wider economic markers, rather than waiting for missed payments to turn up in delinquency data.

The foundation's certified counsellors work across all 50 states and the US territories, giving one-to-one reviews of card debt, loans and housing decisions. More at [nfcc.org](https://www.nfcc.org).

## FAQ

**Q: What is the NFCC Financial Stress Forecast?**
A quarterly reading from the National Foundation for Credit Counseling, scored out of 10, that combines what its counsellors see in casework with wider economic markers. It is designed to flag rising pressure before it shows up as missed payments.

**Q: What is the average credit card interest rate right now?**
The Federal Reserve's 7 August consumer credit release puts the average on credit card plans at commercial banks at 20.94%, and at 22.15% on accounts that were charged interest.

**Q: How much revolving credit do American households carry?**
Revolving credit outstanding stood at $1,351.1 billion in June, up from $1,338.0 billion at the end of March.

**Q: Is household debt getting better or worse?**
Both, on this reading. The foundation says its own debt measures have improved modestly over two quarters, while its stress score rose to 6.7 and is expected to stay there, with thinner savings and heavier use of credit behind the gap.