Credit union members – and U.S. consumers overall – continue to turn to credit cards to help fund large purchases and make ends meet in an uncertain economy.
Consumer credit card debt rose by 116% year over year in 2025, according to a recent study from WalletHub, with 78% of that increase coming during the fourth quarter. With gas prices up more than 30% since the start of the Iran war and other prices expected to remain high, consumers could be reaching for their credit cards in the months to come.
TOTAL OUSTANDING CREDIT CARD DEBT (ADJUSTED FOR INFLATION)
FOR U.S. CONSUMERS | DATA AS OF 12.31.25
SOURCE: WALLETHUB
STRATEGIC INSIGHTS
- At $1.33 trillion, total credit card debt sits just $147 billion below its 2008 peak.
- From a credit union industry perspective, credit card loan growth closed out 2025 at 3.41%, according to Callahan & Associates data. That’s well below the 4Q22 peak of 15.88% but in line with historical norms since the Great Recession.
- Adjusted for inflation, average U.S. household credit card debt was just over $11,561 at the end of 2025, a 2.3% increase from the prior year.
- While that data is per household, the average credit union member’s balance was just $3,403 at year-end. Some of that difference also may also be tied to lower interest rates at credit unions, which compound into comparatively lower balances over time.
- The rise in credit card debt is augmented by increases in the Buy Now/Pay Later An average of 38% of members say they would use BNPL solutions if their credit union offered them – that figure nearly doubles for millennial and Gen Z members – and nearly half (48%) say they’ve already used outside providers like Affirm, Klarna, and others.
- It’s unclear how many credit unions currently offer in-house BNPL solutions, but the number is likely extremely low. A March 2024 study from PYMNTS and Velera found just 1.5% of credit unions offered the service.
