US Credit Card Debt in 2025: What You Can Actually Do About It

As of Q3 2025, total credit card debt in the United States has surged past $1.23 trillion. This is the highest ever recorded number in our country’s history, according to the Federal Reserve Bank of New York (2025).

Balances rose 5.75% year-over-year, driven by consistent inflation and higher living costs—something we’ve all experienced the last few years. To add insult to injury, interest rates make it nearly impossible for many households to pay down principal.

If your own balance feels unmanageable, you’re not alone. You’re one of hundreds of millions of Americans, stuck in a system where the average interest rates feel like you’re pushing a rock up a mountain just to get ahead.

This article gets to the root of this national crisis, breaking down all the data you need to know, and shows you how to fight back.

How Much Debt Do Americans Actually Have?

Average Debt by Generation: Why Gen X Is Hit Hardest

Generation X (43-58) has the highest average credit card debt among today's generations, at about $9600, which is roughly 38% higher than second place, Baby Boomers. They rank the highest because people in their 40s and 50s typically shoulder more responsibilities than any other generation, including:

Peak spending years for mortgage and auto loans
Paying for their kids’ university education
Supporting aging parents who can no longer pay for themselves
Relatively high exposure to medical expenses to top it all off

Generation	Average Credit Card Debt
Gen Z (18–26)	$3,445
Millennials (27–42)	$6,795
Gen X (43–58)	$9,600
Baby Boomers (59–77)	$6,961

Evidently, the winner of this game (that nobody wants to play) is Gen X, the most financially obligated generation of our time.

Average Debt by State

Across the states with the highest credit card balances, average debt ranges from $7,403 to $8,125, with New Jersey carrying the most.

New Jersey – $8,125
Maryland – $7,923
Virginia – $7,770
Connecticut – $7,753
California – $7,726
Texas – $7,620
Georgia – $7,538
New York – $7,492
Florida – $7,431
Colorado – $7,403

What these states share in common: high housing costs, high incomes (meaning higher credit limits), and large cities where the cost of living rises faster than wages.

Average Debt by Income Band

Across income bands, average credit card debt ranges from $3,630 to $11,210, with higher earners carrying the largest balances.

Income Band	Average Credit Card Debt
Less than $20,000	$3,630
$20,000–$39,999	$3,840
$40,000–$59,999	$5,950
$60,000–$79,999	$7,440
$80,000–$89,999	$8,900
$90,000+	$11,210

What the numbers tell us: each income band has credit card debt proportional to the amount of money they earn. If a household earns more, it’s likely to have a higher credit limit, which in turn means more debt. An important note: it’s all relative. A household earning $90k+ will find it a lot easier to make payments on $11k in credit card debt than a household earning less than $20k with $3.6k in debt. The lower the income, the more burdensome the debt.

Average Debt by Credit Score Band

Credit Karma’s dataset shows average balances ranging from $3,736 to $11,628 across credit score tiers, with near-prime borrowers carrying the most debt.

While there’s no single nationwide dataset that breaks down credit card balances by credit score tier, Credit Karma’s 130-million-member dataset provides a useful snapshot of how debt levels differ by credit profile. These figures reflect Credit Karma users specifically, not the entire U.S. population, but the patterns align with broader industry trends.

Credit Score Band	Average Credit Card Debt
Subprime (300–600)	$7,784
Near Prime (601–660)	$11,628
Prime (661–780)	$8,418
Super Prime (781–850)	$3,736

Near-prime borrowers carry the highest balances, often due to their access to higher limits than subprime borrowers, but still face relatively high APRs. Super-prime borrowers carry the lowest balances overall thanks to lower interest rates, higher incomes, and healthier credit behavior.

Average Debt by Education Level

According to the Federal Reserve’s most recent Survey of Consumer Finances, average credit card debt increases with education level, ranging from $3,390 among those with a high school diploma to $7,940 for graduate-degree holders.

Education Level	Average Debt
High school diploma or less	$3,390
Some college	$4,940
Bachelor's degree	$6,210
Graduate degree	$7,940

Higher education means higher income, which in turn means a higher credit limit. And that means higher expectations for the cost of living. We want more, we buy more, and we fall deeper into debt. But once again, the more an individual makes, the easier it is to pay off, so it’s safe to assume that the financial burden of debt hits harder on those who are less educated.

How Pine Can Help with Credit Card Debt

“Let Pine AI speak to the banks on your behalf. Pine AI will handle the 45-minute hold time and negotiate a lower interest rate on your behalf. We don't just give you a script; we make the call for you. Our users have successfully fought back with tasks like "Bank of America Credit Card APR Reduction" and "Chase Credit Card APR Negotiation." - Stanley Wei, CEO of Pine

Why Is Everyone in Debt? (It's Not Just You)

The "Cost of Living" Crisis: Using Credit for Groceries & Gas

Based on a recent PYMNTS report (2025), more Americans are now relying on credit cards to pay for essentials like groceries, gas, and medical costs. In fact, among credit users who rely on cards for basic needs, 44% used credit for essential groceries and 28% used it for out-of-pocket medical costs.

Credit cards were once mainly associated with discretionary spending; things like electronics, travel, and larger “want-based” purchases. On the plus side, wages are outpacing inflation for the first time since the Great Recession. The bad news? The rising cost of credit might neutralize these gains, as credit card balances increased at a nearly 12% annual rate.

The 24% APR Trap: How Interest Rates Create a Debt Spiral

High APRs create a debt spiral because minimum payments barely touch the principal, causing balances to grow even when people pay every month.

Digging deeper: LendingTree’s (2025) report shows the average new credit card APR hit 24.04% in November 2025. Even though it technically dropped .15% since October, this doesn’t change much.

Why? If you carry a $7,321 balance (the U.S. average) and pay only the minimum every month… here’s the simple math:

APR is annual, so convert it to monthly: 24.04% ÷ 12 = 2.003% per month
Turn that into a decimal: 2.003% = 0.02003
Multiply it by your balance: $7,321 × 0.02003 ≈ $146.63

That’s about $147 in interest every single month before you’ve touched a single dollar of principal.

Now compare that to the typical minimum payment (roughly 2% of the balance, or about $146 on $7,321).
Your entire minimum payment doesn’t even cover the interest.

In this case, it is mathematically impossible to pay down your principal.
If this isn’t addressed quickly, the debt can become an insatiable money monster that not only eats at your net worth—month after month—but also prolongs it for years.

This is why credit card debt is often considered the most burdensome type of liability. The speed at which it multiplies is unmatched by most other types.

The Red Flag: Are We in a Delinquency Crisis?

What Does "Seriously Delinquent" Mean?

A “seriously delinquent” credit card account is one that is 90+ days past due. A delinquent credit card account is 30+ days overdue. AOL analyzed Federal Reserve & Equifax data and found that 12.3% of delinquent credit card balances are “seriously delinquent”.

This is the highest level in over a decade. Is there individual responsibility involved? Absolutely. But there’s a deeper, structural problem underlying these numbers, as evidenced by the stark contrast between wages and rising costs.

Why 1 in 10 Young Borrowers Are Seriously Behind

According to Netspend’s analysis of the Federal Reserve Bank of New York’s data, 1 in 10 borrowers aged 18-29 are 90+ days past due (Netspend, 2024). Similar to the Gen X numbers, the reasons go beyond behavioral factors.

The key drivers include:

Young borrowers naturally have lower income during these high-inflation years.
As rent costs skyrocket while wages lag, the gap hits bank accounts hardest.
The use of credit cards for essential spending, like groceries and utilities, digs a hole of debt even deeper.
Student loan payments resumed in 2023 after a multi-year pause, meaning young borrowers have another bill to charge to their credit cards.

The bottom line: this is a historic cost-of-living squeeze in which young people are entering adulthood and not playing the “economic game” with a full deck of cards. Without a clear strategy, paying off all credit card debt can feel like a pipe dream.

How to Take Control (Before the Debt Collectors Call)

What You Can Do: Consolidation, Counseling, and Balance Transfers

Your main options for taking control of credit card debt include debt consolidation loans, balance transfers, and nonprofit credit counseling.

If you’ve made it to this point, all of this may feel like it’s all doom and gloom. However, there is a way forward. We’ve laid out your options, so you know all the details before taking the next step to regain control of your financial future.

Here are your options within the traditional route:

Option 1: Debt Consolidation Loans

Pros: lower your interest rates and have one single monthly payment.
Cons: this requires decent credit and some lenders charge ‘origination’ fees.

Option 2: Balance Transfers
Pros: 0% intro APR for 12–21 months.
Cons: transfer fees may apply, often up to 5%. If these balance transfers are misused (such as failing to make payments on your new card), your credit score can take a serious hit.

Option 3: Nonprofit Credit Counseling
Pros: Helps you create a repayment plan and potentially can reduce interest to 7–10%
Cons: monthly fees and requires closing credit cards which hurts utilization.

These options work. But they take time, effort, and careful diligence to avoid accumulating even more debt—especially if you do it all yourself. That’s where Pine AI comes in.

What We Can Do: The Pine AI Method

Pine AI handles the negotiation, communication, and administrative burden of resolving credit issues and lowering your APR on your behalf.

Instead of spending hours on calls, appeals, and endless back-and-forths, Pine AI performs the tedious steps for you:

Calling issuers and getting in touch with the right department
Managing disputes and any inconsistencies
Negotiating APR using proven tactics
Preparing necessary complaint documentation
Handling follow-ups like a relentless salesperson
Navigating bureaucracy with zero shame

Our AI is trained on the most successful methods to complete any of the above tasks—and it stops at nothing to get the job done. Automated representation is the future of consumer credit advocacy… and it does it more efficiently than any human can.

How Pine can Help with Dispute Late Fees

“Pine AI can call your bank, dispute the fee, and manage the entire complaint process from start to finish. We are built to handle the tedious, multi-step tasks that stop you from getting your money back.” - Stanley Wei, CEO of Pine

FAQ

What’s the average credit card debt in the U.S. in 2025?
As of Q1 2025, Americans who carry unpaid credit card balances (“revolvers”) have an average of $7,321 in debt (LendingTree, 2025). This figure applies specifically to consumers who do not pay their balances in full each month.

What’s the current delinquency rate?
The delinquency rate is defined as credit card balances at least 30 days overdue. According to the recent delinquency data from the Fed, the 30-day delinquency rate is 3.05%. (LendingTree, 2025)

How many Americans carry a balance?
Around 46% of credit card holders carry a balance from month to month. Nearly half the country is paying interest instead of paying off their statement in full. Carrying a balance isn’t inherently bad, but it can quickly become a trap, especially when APRs exceed 20%.

What’s the average APR right now?
As of Q3 2025, the average credit card APR of existing credit cards is 21.39%. The average APR for new credit card offers is 24.04%. (LendingTree, 2025)

Is it better to pay off the highest APR or the smallest balance first?
Both strategies work. If you want to save the most money, pay off the highest APR first (the avalanche method). It reduces the total interest. If you want to build momentum, pay off the smallest balance first (the snowball method). It just depends on whether you need motivation or maximum savings.

Do balance transfers hurt your credit?
A balance transfer can temporarily reduce your credit score due to the hard inquiry and changes in credit utilization. Used strategically, however, it can help you pay down debt faster and improve your score over time. The key is to take advantage of a 0% introductory APR period and avoid new charges during this time.