Americans are carrying more credit card debt than ever before — and the cost of carrying that debt is rising. Here’s what’s going on, why it matters, and what you can do.
The Numbers
Total U.S. credit card balances have climbed past $1.2 trillion, the highest level on record.
Interest rates are punishingly high, with many cardholders facing rates around 24% or more.
Delinquencies are also on the rise, with more households falling behind on payments.
While some large banks have reported slight stabilization, many consumers remain stretched thin.
What’s Driving the Surge?
High interest rates make carrying balances costlier — even modest unpaid balances quickly balloon.
Strong consumer spending and higher prices — families lean more on credit to cover rising costs.
Economic stress and income squeeze — wages aren’t keeping pace with inflation, leaving less to pay down debt.
Expanded credit access for riskier borrowers — higher-rate lending puts pressure on those least able to absorb it.
The Risks for Households
Interest drag: Much of each payment goes toward interest instead of principal.
Snowballing balances: Minimum payments alone often make debt grow, not shrink.
Credit score damage: Late or missed payments can block access to affordable loans.
Stress factor: Constant debt burdens fuel financial anxiety and strain.
What You Can Do Right Now
Pay down the highest-rate cards first (the “avalanche” method).
Look into balance transfer or consolidation options, but watch for fees.
Call your issuer to negotiate lower rates or hardship programs.
Cut nonessential spending and redirect savings to repayment.
Always aim to pay more than the minimum due each cycle.
The Author
Aiden West
Staff Writer, Readovia
