WalletHub just analyzed new data that was released by the Federal Reserve and discovered that even though credit card debt hit a new record high of $1.33 trillion in August 2025, the total is actually $106 billion below the record from 2007 when you adjust for inflation.
Despite the average credit card APR decreasing due to the Fed's rate cuts, 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.
- Old Balances Still Due: 43% of people say they are still paying off credit card debt from last fall.
- No Room for More Debt: Nearly 2 in 5 Americans say they can’t handle more credit card debt.
- More Debt Ahead: 33% of people say they will have more credit card debt by the end of 2025.
- Major Source of Stress: 1 in 5 Americans are very stressed about their credit card debt.
- Uncle Sam in Rough Shape: Nearly 4 in 5 people say the country’s debt is in worse shape than their personal debt.
- Fear of Debt Tops AI: 37% of people are more concerned about never getting out of credit card debt than AI stealing their job.
- No AI in Wallet: 78% of Americans say they would not be comfortable giving AI access to their credit card account.
“It’s not a good sign for the economy when consumers have a record amount of credit card debt, at least in absolute terms, yet most people believe the country’s debt is in worse shape. But that’s where we stand right now, according to new WalletHub research, as nearly 4 in 5 Americans say their personal debt looks good in comparison to the national debt. One-third of people also expect to have more debt by the end of the year, and nearly 40% of folks say they can’t handle any more debt. On the bright side, interest rates are coming down, and attractive 0% APR balance transfer offers are still available. Savvy consumers therefore still have some hope of getting out of debt before long, but it’s going to take some serious budgeting to pull it off.”
- 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 tools available to consumers for free or 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 27.48%, while the average for people with excellent credit is 17.68%, 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
- WalletHub Budgeting Tools
- Best Balance Transfer Credit Cards
- Best 0% APR Credit Cards
- Credit Card Debt Statistics
- Household Debt Report
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