Rising Credit Card Debt Masks Growing Medical Expenses as 'Shadow Debt'
U.S. credit card debt reached a record $1.29 trillion in Q3 2026, according to the Federal Reserve Bank of New York. Financial experts warn that medical expenses are increasingly being converted into 'shadow debt' as consumers use credit cards and home equity lines of credit to cover healthcare costs, making it difficult to track the true extent of medical financial hardship. Total household debt rose by $334 billion in the third quarter to reach $19.1 trillion. While direct medical debt is estimated at $220 billion, experts note that high-deductible health plans are driving consumers toward revolving credit to manage large bills. This cycle often leads to compounding interest and long-term financial instability for households.
Topics: credit card debt Federal Reserve Bank of New York data household debt medical debt