Average Credit Card Debt in America

Credit cards have become about as American as apple pie, baseball and reality dating shows. In fact, 8 in 10 American adults (82%) have at least one credit card.⁵ Unfortunately, all that plastic has led to a whole lot of debt—and plenty of interest and fees to go with it.

So, let’s see what all these numbers mean for you—and what to do if you’re trapped in credit card debt. Heads up: These stats aren’t pretty, but knowing what you’re up against can help you start doing something about it.

How Much Credit Card Debt Do Americans Have?

Americans are $1.26 trillion deep in credit card debt as of the second quarter of 2026.⁶ That’s trillion with a T!

For some perspective on how quickly that number is growing, credit card debt didn’t even cross $1 trillion until the second quarter of 2023, when it hit $1.03 trillion.⁷ That means this type of debt has leapt by more than 22% in about three years.

What Percentage of Credit Card Holders Carry a Balance?

About 45% of credit card holders carried a balance at least once in the past 12 months, according to the Federal Reserve’s most recent survey. And with 82% of U.S. adults having at least one credit card, it’s safe to say plastic has found its way into plenty of American wallets.⁸

Why Is Credit Card Debt Increasing?

Credit card debt is increasing as more Americans turn to credit cards when money gets tight. For families already struggling to make ends meet, swiping a credit card can seem like an easy way to fill the gap when cash runs short.

But that little piece of plastic just sends the bill to future you . . . and future you is paying a pretty hefty price. Americans were charged $191.3 billion in credit card interest and fees in 2024 alone.⁹ Ouch.

And here’s where it really stings: People who say they’re finding it difficult to get by also carry the highest average credit card balances.¹⁰ Talk about kicking you when you’re already down.

What’s the Average Credit Card Debt Balance?

The average credit card debt balance per borrower is 7,279.¹¹ Multiply balances like that across millions of borrowers, and you start to see how Americans have racked up $1.26 trillion in credit card debt.¹²

But whether your balance is $800 or $8,000, it’s still money you owe for stuff you’ve already bought. And the longer that balance sticks around, the more it gets in the way of what you want to do with your money next.

What’s the Average Credit Card Interest Rate?

The average credit card interest rate for accounts being charged interest is 22.15%.¹³ Carrying thousands of dollars in credit card debt is expensive!

For example, on a $7,279 balance at 22.15%, you’d rack up roughly $134 in interest in a single month if the balance stayed the same. That’s just the average though. Credit card interest can range all over the place, depending on the type of credit card.

How Many Americans Are Behind on Their Credit Card Payments?

The current credit card delinquency rate is 2.85%.¹⁴ That’s down slightly from the past two years, but it still represents plenty of credit card balances that have fallen behind.

Keep in mind, you can still have credit card debt even if you aren’t delinquent. Your credit card account becomes delinquent when your minimum payment is late by 30 days or more (the typical billing cycle). When that happens, you get slammed with late fees and penalty interest rates. Plus, credit card companies can report your delinquency to the main credit bureaus—which means it also shows up on your credit report.

Miss enough payments in a row, and your credit card debt will go to collections. And while paying the minimum payment will keep you out of delinquency with the credit card company, you’ll still pile on more debt if you don’t pay off your entire balance every month.

Which States Have the Highest Credit Card Debt?

Alaska has the highest average credit card balance in the country at $7,760.¹⁵ But America’s got credit card debt from sea to shining sea. Here are the 10 states carrying the highest average balances:

How Much Do Credit Card Companies Make in Interest and Fees?

In 2024, consumers were charged a whopping $191.3 billion in credit card interest and fees—$160 billion in interest and another $31.3 billion in fees.¹⁷

And you know who benefits from all that credit card debt? The people handing out the credit cards! (There’s a reason they can afford to build all those skyscrapers.) Yep, fees and interest are the bread and butter of credit card companies.

How Do You Get Out of Credit Card Debt?

You get out of credit card debt by stopping the borrowing and attacking what you owe with a plan. That means ditching the credit cards, paying them off with the debt snowball, and getting on a budget so you can free up more money to throw at your debt.

And we’ve got some good news: You can do this! Even if you currently feel like you’re drowning in credit card debt, you can ditch your credit cards and say goodbye to debt for good. Here’s how to pay off your credit card debt once and for all.

Quit using credit cards.

If you want to pay off credit card debt, you’ve got to stop it at the source. That means literally cutting up your credit cards. Every. Single. One. They’re not doing you any favors. They’re only holding you back. It’s what Dave Ramsey calls a plasectomy.

Oh, and all those credit card points and rewards? They’re not really free. They’re just sneaky ways of getting you to charge more to your card. Credit card companies know that the more they get you to spend with their cards, the less likely you are to pay them off—which means more money in their pockets. This industry is straight-up predatory, folks!

Now, we know ditching your credit cards might sound terrifying, especially if you’ve been relying on credit to cover your bills. But you can live (and thrive) without credit cards! In fact, quitting the credit card game will actually free you up to make more progress with your money.

Follow the debt snowball method.

The debt snowball helps you pay off debt by attacking your balances from smallest to largest—regardless of interest rate. It gives you quick wins along the way so you can build momentum and stay motivated.

Lots of “methods” are out there for paying off credit card debt—like balance transfers or debt consolidation loans. But most of them only move your debt around (yeah, real helpful). The debt snowball gives you a plan you can actually stick with. Here’s how it works:

1. List all your debts (except your mortgage) from smallest balance to largest.
2. Make minimum payments on all those debts except the smallest debt.
3. Put as much extra money as possible toward your smallest debt every month until it’s gone.
4. Then, take what you were paying on your smallest debt and add that to your payment on the next-smallest debt until it’s gone too.
5. Repeat the cycle until each debt is paid in full and you’re completely debt-free!

And that momentum is real. Judy, a member of THE Ramsey Baby Steps Community, shared: “I finally paid off and closed my last credit card. On my way to having a zero credit score, one debt at a time. On to attacking student loan next, then mortgage! Life is so much better without debt.”

It’ll take patience and hard work, but you can make it happen. You’ve got this!

Get on a budget.

A monthly budget is a must if you want to pay off credit card debt because it helps you take control of your spending and find more money to throw at your debt.

When you’re used to just charging everything you buy to a credit card and hoping for the best, it can be hard to keep track of your spending or know how much you have left for the month. But when you have a budget, you know exactly where your money is going because you already made a plan for it. Total game changer!

Instead of worrying about whether you’re actually making progress on your debt—or worse, whether your card will get declined at the grocery store—you can feel confident.

Seriously, you need a budget if you ever want to get your spending (and your sanity) under control. Check out our EveryDollar budget app to get started on a new direction for your finances—one where you never have to make credit card payments again.