Credit Card Debt: Trends and Stats 2025

Turbo Takeaways

• Credit card debt continues to remain near record highs in the post-pandemic economy.
• Average individual credit card debt is nearly $7,000 in the U.S., with households topping $10,000. 
• Consumers owed just over $1 trillion in credit card debt in Q12025.

Credit cards play a crucial role in the financial decisions of most Americans. From their inception in the late 1950s as a simple loan system to revolving lines of credit with a monthly balance, credit cards have become one of the most used options for completing financial transactions. With over 600 million active credit card accounts in the U.S. in Q1 of 2025, that’s roughly two cards for every consumer.

Lines of credit, such as credit cards, offer a way to defer immediate payments, giving consumers more flexibility and purchasing power. However, this convenience can also lead citizens into debt. As credit card debt continues to rise to new heights, understanding how this trend impacts American consumers and indicates the nation’s financial health is essential for individuals and families across the country.

In this article, we’ll analyze credit card statistics that illuminate the financial well-being of the American consumer and the broader economy. We’ll also share strategies that help consumers mitigate huge credit card balances and restore financial success.

U.S. Credit Card Debt Statistics

Credit card debt statistics indicate the nation’s overall financial health and uncover the complexities of consumer debt. Data on credit card usage also shows repayment trends and the overall debt burden carried by the average U.S. household.

“These statistics offer vital data both for individuals to manage their finances and for financial institutions to make predictions and determine risk,” shares Brad Reichert, a debt expert and the founder and managing director of Reichert Asset Management LLC.

“Understanding the intricacies of credit card debt statistics is crucial for better decision-making when it comes to using credit, both at the individual consumer and business levels,” Reichert explains.

Here’s a deep dive into the most relevant recent credit card data from leading sources:

Total Debt Balances

American consumers continue to leverage the purchasing power of credit cards through economic shifts, carrying historic balances that peaked in Quarter Four of 2024 (without adjusting for inflation). Although balances fell by $29 billion in Q1 of 2025, they were still 6% above the nation’s total credit card debt during the same period one year prior. In Quarter One of 2025, the average American consumer carried $7,321 in credit card debt.

Household credit card debt stands at an average of $11,303. This is just below the 2007 record of over $12,000 per household.

Credit Card Debt by State

Location can also impact the amount of credit card debt consumers carry, with certain states or areas carrying a heavier burden than others. States with the highest average credit card debt include:

*Data from Lending Tree

Of these states, the top six carry an average of $9,000 or more, with some states standing out for a different reason. Although it didn’t make the list of places with the most credit card debt, Georgia was the state with the biggest jump in credit card debt at 20.5% from 2024 to 2025. Mississippi residents carry the smallest average credit card debt in the country at $5,221 per consumer.

Credit Card Debt by Age

According to Federal Reserve data, age is a major factor impacting credit card balances, with a disparate amount of debt accrued by certain groups. Adults ranging from ages 40 to 49 carry the largest burden, followed closely by the 50-59 age group.

This could be due to factors like spending for family needs, changes in purchasing habits, and increased use of credit cards to support lifestyle choices as consumers reach peak earning years.

Here’s a look at the way credit card debt breaks down by age group:

*Data From the Federal Reserve Bank of New York

Trends in U.S. Credit Card Debt

Credit card debt in the United States has soared higher and higher in the past few years. After plunging during the pandemic, credit card balances leaped to unseen levels in the years that followed. In fact, 2024 saw the largest spike since the Fed began tracking credit card debt in 1999.

Credit card use remains high, with 631 million active credit card accounts in the U.S. in Quarter One of 2025. Historically, store cards from specific retail chains have been the most popular accounts, followed by Visa and Mastercard.

Nearly half of all cardholders (47%) said they carried a balance in 2024. This is problematic because of the continued growth of credit card APRs. In 2024, the average APR was 23%, adding substantial fees to any balances carried over from month to month. When interest fees and balances continue to grow, consumers often find it difficult to pay off their accounts, leading to credit card debt.

Although credit cards only account for 6% of the total consumer debt balance in the U.S., this still amounts to $1.18 trillion in debt for American consumers.

Below is a breakdown of consumer debt in the U.S.:

*Source: Federal Reserve Bank of New York

How Credit Card Debt Affects Your Credit History

Credit card debt can make a big impact on your credit history, influencing several important factors that matter to lenders and credit reporting organizations. Here’s a look at the top ways debt from credit cards affects your credit history:

Credit Scores

When you don’t pay off credit card debts in full or miss a payment on one of your accounts, your credit score suffers. Payment history accounts for 35% of your calculated credit score and represents the largest factor in determining your number.

When calculating your score, credit reporting organizations include late payments, any debt in collections, and how far you’ve fallen behind on paying bills. If you’re consistently carrying large unpaid balances on one or more credit cards, that debt also negatively impacts your score.

With a “Good” or stronger credit score, you’re more likely to qualify for loans and new lines of credit. This means you’ll need a score of at least 670 to be considered less of a risk for lenders.

If you’re not sure of your current credit score, you can check for free from any of the three major reporting agencies: Equifax, Experian, and TransUnion. These organizations allow you to monitor your credit and provide support to help you understand your score and history.

Credit Utilization Rate

Credit card utilization rates, expressed as a ratio or percentage, measure how much credit you’re using versus what you have available. This statistic is considered one of the primary ways that existing or potential lenders can assess how much you take on high-risk, unsecured debt based on your account’s credit limit.

Your credit utilization rate also accounts for up to 30% of your credit score. The only factor that weighs more heavily is how often you pay your bills on time (as previously mentioned, up to 35% of your total score).

Utilization rates get higher the more credit card debt you carry. However, most credit counselors and financial advisors recommend keeping your total utilization rate below 30% to prevent your credit score from dropping. Utilization rates are calculated using revolving lines of credit, such as credit cards and HELOCs (home equity lines of credit).

To calculate your credit utilization ratio, add the total outstanding balances on all your credit accounts and divide that dollar figure by the sum of the credit limits available on each account. Then multiply by 100 to get a percentage.

Here’s an example of how to calculate your credit utilization ratio:

Credit Card Debt Repayment

Most credit-scoring models now look at your balance history to determine if you pay off bills or continue to defer payments from month to month. The more you pay off your debts in full, the better your score.

Credit history also considers strategic debt repayment. Consistently paying down credit card debts instead of carrying a growing balance appears more favorable to credit reporting organizations. Because these groups look at overall trends in your payment history, striving to get out of debt shows your commitment to good financial management and may help you rebuild credit.

Factors That Cause Credit Card Debt

Credit card balances can quickly become overwhelming, leading to debt. However, it’s often a combination of factors that lead to heavy balances. Situations like emergency medical procedures, unexpected home repairs, and high-interest charges can all contribute to credit card debt.

Regardless of how and what you charge, financial habits typically contribute the most to credit card debt. Here are some situations that may lead to heavy and continuous debt from credit cards:

Opening Too Many Credit Card Accounts

Opening a credit card to reap the rewards of cash-back and other benefits isn’t a bad thing. Consistently paying off a few cards can actually benefit your credit utilization rate. The trouble comes when consumers juggle too many accounts, charging more than they realize over multiple cards.

Keeping up with payments on multiple accounts requires consumers to carefully plan and monitor each card. Doing this for more than a few cards just isn’t realistic. Choose a couple of cards that offer the benefits you want, and pay them off in full each month to avoid debt.

Charging Beyond Your Income

Because credit cards offer a buy now, pay later approach, it’s easy to make purchases beyond your means. Also, without a budget, you risk spending more than you make. To avoid big balances you can’t afford, create a careful budget that allows for credit card spending on needs and wants based on your income.

If you’re in debt, wants should wait. Using a credit card as a personal loan is risky unless you plan to immediately pay back the amount with your earnings.

Paying the Monthly Minimum

Another situation that can lead to credit card debt is paying only the minimum each month on any or all accounts. While this may seem like a quick fix to avoid late or missed payment fees, it can lead to massive interest payments if you keep deferring your bills.

Once you start carrying a monthly balance, interest builds, making it even harder to pay off your account in full. If you’re struggling with minimum payments, try using a credit card interest rate calculator to see a breakdown of how much and how long it’ll take you to pay everything off. Next, determine how to pay more than the minimum each month and end your debt.

Overlooking Interest Rates

You won’t owe any interest if you pay off your accounts in full every month. However, if you ever pay just the minimum balance, this percentage can quickly mean extra fees you’re unprepared for. Since most cards charge an APR of around 20%, finding a credit card with a lower interest rate can lighten your debt burden if you ever pay just the minimum.

It’s important to know the interest rate on each of your current credit card accounts and determine the interest rate before signing up for a new card. Some credit cards offer low or zero interest for a short time, with rates spiking over 20% after the introductory period.

Avoiding Assistance

Many consumers make the mistake of not reaching out to lenders when times get tough. If you’re having trouble paying off credit card bills, don’t go through it alone.

Credit card companies may offer you assistance if you explain that you’re having financial difficulties, giving you a payment extension, waiving late fees, or lowering your interest rate to help you get back on track. Contact lenders before you miss a payment to avoid fees and create a more manageable payment plan.

How To Manage Credit Card Debt

Effectively managing credit card debt is essential to your financial well-being, especially when you’re trying to pay off balances of $10,000 or more. Committing to debt repayment and smart money management empowers individuals to regain control of their finances and work towards a debt-free future.

Here are some practical and effective steps to take when you’re trying to pay off credit card debt:

1. Examine Your Budget To Reduce Spending

Take a moment to identify the spending patterns that got you into debt. By examining your income and regular monthly expenses (especially your discretionary purchases), you’ll find areas where you can free up some cash flow to put toward paying off your credit card debt.

Creating a budget, either through digital tools or an app, is an effective way to start mapping out your spending. Financial experts agree that following a budget is one of the most important ways to effectively manage your finances.

2. Switch To Paying With Cash

For most purchases, especially small ones, stick to using your debit card or cash. This way, you’ll keep your credit card balances from climbing back up again. Use credit cards only for emergencies to save on high-interest charges each month.

Financial expert Dave Ramsey recommends using the Envelope Method to distribute funds every month. This involves literally filling an envelope with enough cash to pay for items like groceries and discretionary spending.

3. Plan Your Own Debt Repayments

Set up your own debt payments based on total interest or total debt. The Debt Snowball and Avalanche methods are two DIY approaches to debt repayment. Both methods help you structure a plan to pay off debt based on either the debt with the highest amount owed or the account with the highest interest payments.

Both of these methods require you to calculate your own debt repayment amount and pay it to the credit card company each month. Staying organized and making consistent payments is the key to this DIY solution to heavy credit card debts.

4. Consolidate Debt

If you have a “Good” to “Excellent” credit score, consider consolidating your credit card debt with a balance transfer offer on one of your accounts. You can also use a debt consolidation loan to reduce your interest rates, save on interest charges, and pay down your credit cards faster.

Before you move debt to a zero-interest credit card, compare APRs and balance transfer fees. For consolidation loans, shop for the best rates offered by different financial institutions and carefully read through the loan terms. Make a plan to pay off debt quickly so you’re not stuck paying sky-high interest rates.

5. Consider Debt Settlement

If your credit card debt exceeds $10,000 or more, consider debt settlement. Using this method, a debt relief organization can help you negotiate with your creditors to pay less than what you owe on your credit card balances.

If you’re not sure where to start, consider enrolling your debt with experienced professionals, like the team at TurboDebt®, who can help you put together a plan for reducing your debt. These plans typically help you pay off debt faster and can reduce your total debt balance.

Build a Debt-Free Future With TurboDebt

TurboDebt® connects consumers with debt relief programs tailored to their unique financial circumstances. Creating a debt relief plan with a trusted partner makes it easier to stay on track while paying off big credit card balances. We strive to help clients get out of debt and stay that way using our support and resources.

With nearly 20,000 positive reviews across Trustpilot and Google, we’ve helped hundreds of thousands of consumers overcome debt. It only takes a few minutes to find out if you qualify for our customized solutions. Get started today with a free consultation and begin your journey to financial freedom!