Credit Card Debt Hits All-Time High

Credit card debt in the US is at an all-time high, with about 48% of Americans reporting that they have credit card debt according to a new survey by Bankrate.

Among the people who have debt, more than 70% said they believe they’ll be able to pay off their balance within five years.

“It’s definitely a problem at the household level,” said Ted Rossman, a senior industry analyst at Bankrate.

According to the latest report from the Federal Reserve Bank of New York, credit card debt in the US has reached $1.21 trillion — 4% higher than a year ago.

Rossman says that this breaks down to about $6600 per household.

“If you make minimum payments at the average interest rate of about 20%, you’re in debt for 18 years and you owe close to $10,000 in interest,” Rossman said.

Many experts worry that higher prices due to President Donald Trump’s tariffs could worsen debt for Americans. The White House is hoping that tariffs will encourage companies to bring jobs back to the US, but that will take time.

“People are feeling squeezed between higher housing costs and medical care and food and childcare and all these things,” Rossman said. “There’s just not as much wiggle room.”

If you have a lot of credit card debt, Rossman says it’s best to pay off as much as you can so you don’t pay more in interest and penalties. You could also look into transferring your debt to a 0% interest credit card.

Jenn Sullivan