U.S. consumers are turning to credit cards and Buy Now, Pay Later (BNPL) plans to help fund large purchases and make ends meet. Credit union leaders take note: members aren’t immune to this trend.
Consumer credit card debt rose by 116% year-over-year in 2025, according to a 2026 study from WalletHub. A full 78% of that increase came 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 more 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 is only slightly lower than its $147 billion peak in 2008.
- From a credit union industry perspective, credit card loan growth closed out 2025 at 3.41%, according to data from Callahan & Associates. That’s well below the fourth quarter 2022 peak of 15.88% but in line with historical norms since the Great Recession.
- Adjusted for inflation, average U.S. household credit card debt topped $11,561 at the end of 2025, a 2.3% increase from the prior year.
- The average member balance at credit unions was $3,403 at year-end. Some of that difference could 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 BNPL space. According to a PYMNTS series, 38% of credit union members say they would use BNPL if their credit union offered it. That figure nearly doubles for millennial and Gen Z members, nearly half (48%) of whom 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. A March 2024 study from PYMNTS and Velera found just 1.5% of credit unions offered the service.
