Americans are now borrowing more to bet on stocks than they owe in credit card debt

As of June 2026, more Americans are borrowing money to invest in stocks rather than relying on credit card debt, according to Financial Industry Regulatory Authority (FINRA) data. The total margin debt in U.S. customers' securities margin accounts reached $1.5 trillion, surpassing the $1.26 trillion credit card debt held by Americans.

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Margin trading, essentially investing with borrowed funds, has seen a 7.9% increase in the June 2026 figure compared to May, with a notable 50% growth from June 2025. Margin numbers have shown a consistent upward trend, rising by around 50% within a year. The rise is attributed to the ongoing bullish stock market trend, with benchmark indices like the S&P 500 and Nasdaq-100 experiencing significant gains.

However, this trend comes with risks, as brokers issue margin calls when traders cannot cover their borrowed positions, leading to potential liquidation. The SEC approved single-stock leveraged ETFs in 2022, enabling easy buying and selling of these shares. Experts, such as Jurrien Timmer, caution against these products, describing them as "weapons of self-destruction" due to their extreme volatility.

The popularity of leveraged products has contributed to wild price swings in markets like the Korea Composite Stock Price Index (KOSPI). Additionally, a recent legal change in the U.S. has made it easier for traders with smaller accounts to take on larger positions, eliminating the previous pattern-day trading requirement for making more than four day trades within a five-business-day window.

Despite financial gurus cautioning against margin trading, many investors are still considering this approach. To minimize risks, they should be prepared for potential total loss of funds and utilize automated stop-loss orders to avoid liquidation.