WalletHub just analyzed new data that was just released by the Federal Reserve and discovered that even though credit card debt hit a new record high of $1.31 trillion in May 2025, it’s actually $113 billion below the record from 2008 when you adjust for inflation.
Despite the average credit card APR decreasing due to the Fed's rate cuts last year, WalletHub projects that consumers will end 2025 with $70 billion more credit card debt than they started the year with. You can find additional takeaways from WalletHub’s latest Credit Card Debt Survey below.
- Consumers Care More Than Politicians: More than 4 in 5 people say they’re more serious than the government about paying off debt.
- Carrying Old Debt: More than 2 in 5 Americans are still paying off credit card debt from last summer.
- More Debt on the Horizon: Nearly 1 in 3 people say they will have more credit card debt by the end of 2025.
- Public Demand for an Interest Rate Cap: 83% of Americans think the government should put a cap on credit card interest rates.
- AI-Free Finances: 80% of Americans say they would not be comfortable with giving AI access to their credit card account.
“While the headline news that consumers reached another credit-card debt record is eye-catching, there’s more to the story. When you adjust for inflation, consumers actually handled the first five months of the year pretty well, all things considered, with credit card debt hardly budging from last year’s level, according to WalletHub’s analysis of the latest data from the Federal Reserve. Still, many people are far from optimistic about the future of their finances. WalletHub’s latest survey found that almost 1 in 3 people believe they will have more credit card debt by the end of the year, and more than 40% of people are still paying off credit card debt from last summer. On the bright side, the vast majority of Americans say they’re more serious about paying off debt than the government. That isn’t the highest bar to clear, but it’s a start. If you can add a 0% balance transfer credit card and a well-thought-out budget to that can-do attitude, you’ll really be cooking.”
- John Kiernan, WalletHub Editor
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