WalletHub just analyzed new data released by the Federal Reserve and discovered that U.S. households had $1.35 trillion in credit card debt at the end of November 2025, and this doesn’t even include the full holiday shopping season. That is a new record in absolute terms, but it is 8% below the record when adjusted for inflation.
Despite the average credit card APR decreasing due to the Fed's rate cuts, WalletHub projects that consumers will end 2025 with $50 billion more credit card debt than they started the year with. You can find additional tips and takeaways from WalletHub’s latest Credit Card Debt Survey below.
- Drowning in Debt: Nearly 2 in 5 people say they will have more credit card debt by the end of 2026.
- A Lifetime of Debt: 42% of Americans think they will have credit card debt their whole life.
- Financial Stress Runs Deep: More than 1 in 5 Americans are very stressed about their credit card debt.
- Budgeting Our Way Out of Debt: More than 3 in 5 people say a good budgeting app helps you get out of debt faster.
- National Debt Raises Alarms: 67% of people say the country’s debt is in worse shape than their personal debt.
- AI Adds to the Problem: 53% of people say AI is making things worse rather than helping them get out of credit card debt.
“The fact that the record amount of credit card debt we currently owe isn’t really an inflation-adjusted record probably won’t do much to make consumers feel better. We still have a ton of debt, and it remains extremely expensive – as do prices in general – with no savings in sight. Nearly 2 in 5 people are already resigned to having even more credit card debt by the end of 2026, according to a new WalletHub survey, and 42% of people expect to have credit card debt for their entire life. On the bright side, it’s resolution season, and consumers have a great opportunity to take control of their financial future. Trying a budgeting app like WalletHub is a great start, as more than 3 in 5 people say it can get you out of debt faster.”
- John Kiernan, WalletHub Editor
5 Tips for Dealing With Credit Card Debt
- Separate your everyday expenses from your debt. When you carry a credit card balance from billing period to billing period, you lose your grace period for new purchases. That means interest starts applying to new purchases right away. But if you use one card for ongoing debt and another for everyday purchases that you can pay off by the due date, the everyday purchases should never accrue interest charges.
- Use a balance transfer deal to lower the cost of existing debt. The best balance transfer credit cards can give you a break from interest charges for as long as 24 months, and attractive offers are accessible to individuals with fair credit or better. A prolonged 0% introductory period can yield significant savings on interest, helping you get out of debt faster.
- Improve your budgeting and saving efforts. There are several good budgeting apps available to consumers for free or at a low cost. For example, WalletHub’s free budgeting tools can help you get organized, set up your budget, and analyze your performance. Taking ownership of your budget can help you free up some room for emergency fund contributions and debt payments so you can get out of debt and stay there.
- Use a rewards card for everyday spending. You can save 1% to 2%+ on every purchase with the right rewards card. You might also save a couple hundred dollars with an initial bonus. And if you plan to pay the bill in full monthly, the interest rate won’t matter.
- Work to improve your credit score. People with higher credit scores tend to pay lower interest rates. For example, the average APR among credit cards for people with fair credit is 27.36%, while the average for people with excellent credit is 17.27%, according to WalletHub’s database of 1,500+ credit card offers. Having good or excellent credit also makes it easier to get credit cards with a 0% introductory APR.
More From WalletHub
No comments:
Post a Comment