Americans paying record credit card debt carry debt for longer
Will potential federal rate cuts help Americans lower their credit card debt in the second half of 2024?
Scripps News
- Many Americans, especially high-income credit card debt, have lied about the amount they owe.
- The average credit card debt is $7,321, with an average interest rate of 21.4%, contributing to a national total of $1.2 trillion in credit card debt.
- Experts will focus on paying more than the minimum amount, one card at a time, consider 0% APR cards, or contact your credit card company to tackle your credit card debt.
Credit card debt can be embarrassing for many Americans.
Apparently, that’s especially embarrassing for people who earn a lot of people.
A recent survey by LendingTree, an online lending market, shows that about two-fifths of consumers with credit card debt lied about the amount of debt.
Among people with card debt that earns more than $100,000 a year, stocks that lie about it go up in half.
Experts say that when it comes to guilt and shame, credit card balances differ from other debts.
Homeowners with a 4% mortgage interest rate may boast to their neighbors about it. Young adults may lament student loans with five-figure balances.
However, compared to these obligations, credit card liabilities can sometimes feel like a symbol of inconsistent spending, poor planning, or bad budgeting.
“Many people see credit card debt as a sign of failure, and perhaps a sign of weakness, or a lack of discipline,” said Matt Schultz, chief consumer finance analyst at LendingTree.
America owes $1.2 trillion in credit cards
Lendingtree is a country’s collValid credit card balances were $1.2 trillion as of early 2025. Approximately 46% of cardholders have carried their balances for at least a month in the past year. For credit cardholders with debt, the average amount is $7,321. The average credit card interest rate is a whopping 21.4%.
Lendingtree surveyed 2,000 consumers in March and asked about their credit card habits. Among the survey results:
- Thirty-nine percent of people with card debt said they lied to their partner, parents, or siblings.
- Six-figure income earners with card debt were more likely to lie than income under $30,000 on a margin of 50% to 32%.
- 28% of consumers with credit card debt said they didn’t discuss it with anyone. Women were more likely to have mothers than men.
High-income people also have credit card debt
Credit card debt may seem like a problem that is limited to low-income Americans. However, Lendingtree found that half of six-figure incomes have card debt compared to 39%, earning less than $30,000.
“People don’t expect people who make a lot of money to have a lot of credit card debt,” Schultz said. “And the truth is, having a lot of money doesn’t mean you’re not good at managing it.”
If you’re suffering from card debt, here are some expert tips to get you out of your way.
Pay the minimum amount
If you are determined to repay the balance on your card, be proactive. Bankrate senior industry analyst Ted Rothman said the minimum payments calculated by credit cards typically cover only 1% of interest and balance.
To create a real dent, experts tell you to stop charging new fees on your card. Next, increase your payments. Consider the monthly amount equivalent to 5% of your total income. Or double your minimum payment in the first month. Then, as your balance drops, you will pay the same amount of dollars over the next few months.
Split cards and conquer them
If you have multiple credit cards, experts say you should choose one and take it seriously. Start with your card with the highest interest rate or lowest balance.
If you choose a card with the lowest balance, you can quickly pay it off and earn a psychological victory. Selecting the card you are most interested in will result in less interest over time.
Get a Zero APR Credit Card
Currently, the average credit card rate is above 20%, but it is still possible to sign up for a card you have no interest in at all for 15, 18 or 21 months.
Experts say Zero APR cards can be a powerful tool for repaying debts as they do not pay interest over the course of a promotional month.
However, be careful. Once the promotion is over, the credit card company will charge interest on the remaining balance.
Please call your credit card company
Another way to repay your card balance more quickly is to convince your credit card company to lower your interest rate. Call your provider and ask if you would like to consider reducing your rate.
If that doesn’t work, consider contacting a nonprofit organization, such as a consumer credit counseling service. A credit counselor can negotiate a low interest rate on your behalf.
