Credit Card Debt Hits $1.23 Trillion as 21% Interest Rates Threaten Bank Earnings in 2026
U.S. credit card balances reached $1.23 trillion in Q3 2025 while commercial bank interest rates climbed to 21%, setting up potential loan defaults that could pressure bank earnings. Financial institutions face rising charge-off risks as consumer debt service costs surge and labor markets weaken, with Q1-Q2 2026 earnings reports likely to show elevated loan loss provisions.
ViaNews Editorial Team (Markets)•