{"id":4090,"date":"2026-01-12T14:44:23","date_gmt":"2026-01-12T14:44:23","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2026\/01\/12\/bankrates-2025-credit-card-debt-report-bankrate\/"},"modified":"2026-01-12T14:44:23","modified_gmt":"2026-01-12T14:44:23","slug":"bankrates-2025-credit-card-debt-report-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2026\/01\/12\/bankrates-2025-credit-card-debt-report-bankrate\/","title":{"rendered":"Bankrate\u2019s 2025 Credit Card Debt Report | Bankrate"},"content":{"rendered":"
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Here\u2019s the kicker about credit card debt \u2014 as soon as it starts rolling down the hill, interest charges mean it gains momentum and size. Unfortunately, it\u2019s a slippery slope that many credit cardholders find themselves on\u2026 and increasingly stuck there long-term.<\/p>\n

Credit card interest rates are some of the highest borrowing costs out there, currently averaging above 19%. When you carry a card balance, not only are you taking money from your future self, but you\u2019re piling interest on top of interest.<\/p>\n

The implications of credit card debt are far-reaching, from pausing major life decisions to feeling like you\u2019ll never pay it off. But with the right tools, it\u2019s possible to tackle your debt before it takes over.<\/p>\n

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For millions of American households, credit card debt represents their highest-cost debt by a wide margin<\/q> \u2014 Ted Rossman, Bankrate Senior Industry Analyst <\/cite> <\/p><\/blockquote><\/div>\n

Bankrate\u2019s key insights on credit card debt<\/h2>\n
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Bankrate Data Center <\/h3>\n

Since 1976, Bankrate has been the go-to source for personal finance data, publishing average rates on the most popular financial products and tracking the experience of consumers nationwide.<\/p>\n

See more <\/p>\n<\/div><\/div>\n

Long-term credit card debt is on the rise<\/h2>\n

About 3 in 5 cardholders (61%) with credit card balances have been in debt for at least a year \u2014 that\u2019s up from 53% in late 2024. This includes 31% of those who have been in debt for at least three years and 21% who have been in debt for at least five years.<\/p>\n

Even if you\u2019re making minimum payments on your balance, that may not cut it.<\/p>\n

\u201cMinimum payments could keep you in debt for decades and cost you thousands of dollars in interest,\u201d Rossman explains.<\/p>\n

For example, the average credit card balance is $6,523, according to TransUnion. If you only make minimum payments at 19% APR, you could be in debt for 170 months and pay $6,491 in interest.<\/p>\n

Nearly half of American credit cardholders still carry debt, mainly due to emergency costs<\/h2>\n

Lana Linge, 29, has been through three cycles of credit card debt during the last decade. Most recently, she was in $40,000 of credit card debt spread across six cards.<\/p>\n

Linge admits, in some ways, she was living beyond her means and spending to cope emotionally. But she was also laid off the year prior, and was still on the hook for mortgage payments, an emergency vet bill and everyday expenses like gas and groceries.<\/p>\n

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Inflation had increased\u2026 and everything cost more. I didn\u2019t adjust my cost of living or lifestyle at all.<\/q> \u2014 Lana Linge, Host of Your Inner Spark Podcast <\/cite> <\/p><\/blockquote><\/div>\n

Linge is not alone \u2014 47% of American credit cardholders carry a balance as of December 2025. That\u2019s basically flat since November 2024 (when it was 48%), but up from 39% in December 2021.<\/p>\n

Linge never missed a credit card minimum payment. But eventually, she could no longer pay her bills. She cut up her credit cards and made the decision to file for Chapter 7 bankruptcy.<\/p>\n

\u201cWhen you view yourself as a pretty responsible individual, it can be very difficult to determine the fact that you have a part of your life that you have not been responsible in,\u201d Linge says. She also shares that she grew up in a financially unstable household. At one point, they lost their home to foreclosure.<\/p>\n

Moving forward, Linge says she aspires to not end up in this situation again \u2014 by checking her finances daily and changing her mindset around money.<\/p>\n

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Americans have trouble talking or even thinking about credit card debt. We need to take the stigma out of it. If you have credit card debt, you have plenty of company, and the causes are usually practical. But you can\u2019t hide from it, especially since credit card balances and rates are near record highs.<\/p>\n

\u2014 Ted Rossman<\/cite> Bankrate Senior Industry Analyst<\/span> <\/p><\/blockquote>\n

About half of American cardholders carry credit card debt, but Gen Xers and millennials lead the pack<\/h2>\n

The number of American cardholders with credit card debt \u2014 47%\u2014 has remained nearly flat since this time last year (48%).<\/p>\n

Among credit cardholders, more than half of Gen Xers (ages 46-61; 53%) and millennials (ages 30-45; 53%), as well as more than 2 in 5 boomers (ages 62-80; 43%) and Gen Zers (ages 18-29; 40%) carry a balance from month to month.<\/p>\n

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    Some credit card debtors feel doomed<\/h3>\n

    About 1 in 5 (22%) credit card debtors don\u2019t believe they\u2019ll ever get out of credit card debt. And this isn\u2019t confined to older generations. Twenty-three percent each of millennials and boomers and 22% of Gen Xers with credit card debt believe they will always have credit card debt, compared with 18% of Gen Zers.<\/p>\n

    Fewer than half of debtors (48%) have a plan to pay off their credit card debt.<\/p>\n

    More than a quarter of debtors (27%) feel less confident in their ability to get out of credit card debt now than they did last year.<\/p>\n

    And almost 1 in 5 debtors worry they might not be able to make their minimum payments at some point in the next six months (19%).<\/p>\n

    \u201cThe fact that most credit card debtors don\u2019t have a plan to get out of debt is alarming but not surprising,\u201d Rossman says.<\/p>\n

    In general, money is a common stressor for Americans\u2019 mental health, with 43% citing it as something which has a negative impact on their mental health, according to Bankrate\u2019s 2025 Money and Mental Health Survey. Current events follow closely at 38%. So today\u2019s economic indicators might explain why Americans are hemming and hawing about their future debt repayment.<\/p>\n

    Emergency and day-to-day expenses are the most common reasons for credit card debt<\/h3>\n

    Among credit card debtors, more than 2 in 5 (41%) say the primary cause was an emergency expense.<\/p>\n

    That includes medical bills (12%), car repairs (8%), home repairs (8%) and other emergency or unexpected expenses (13%).<\/p>\n

    About 1 in 3 (33%) cited day-to-day expenses such as groceries, childcare and utilities as the primary cause. Only 10% of credit card debtors cited retail purchases such as clothing and electronics as the primary cause of their credit card debt, and 7% said vacation and\/or entertainment expenses.<\/p>\n

    Credit card debt puts people\u2019s lives on pause<\/h2>\n

    Nearly 2 in 3 U.S. credit cardholders with debt (64%) say they have delayed or avoided financial decisions because of their credit card debt, according to Bankrate\u2019s 2025 Dealing With Debt Survey.<\/p>\n

    Saving for an emergency (34%), investing (23%) and buying a vehicle (21%) are the most likely to be set back.<\/p>\n

    Credit card debtors also say they\u2019ve put off helping family and\/or friends (19%), donating to charity (17%), spending on wellness (17%, e.g., gym fees, weight management programs, meal delivery services), spending on healthcare (17%, e.g., medical procedures, medication) and making home purchases (13%).<\/p>\n

    And when it comes to major life choices, debtors have delayed continuing education and\/or job-related training courses (8%), different and\/or new employment (7%), having children (5%) and getting married (5%).<\/p>\n

    Missing these milestones shows that credit card debt can hold you back. \u201cThis is why it\u2019s so important to pay off your credit card debt as quickly and cost-effectively as possible,\u201d Rossman says.<\/p>\n