The U.S. consumer has an average credit card balance of $6,519, according to TransUnion’s October 2025 Credit Industry Snapshot Report. Meanwhile, credit card balances among all consumers rose by $24 billion during the third quarter of 2025, totaling $1.23 trillion, as reported by the Federal Reserve Bank of New York.
The Fed’s most recent rate cut was an attempt to ease borrowing costs for consumers and curb inflation. But at a time when 71% of Americans feel they live paycheck to paycheck, balances may continue to increase — especially around the holidays.
[READ: What the Fed Rate Cut Means for Credit Cards]
Average Credit Card Balances
The average credit card balance might be $6,519, but that number varies by credit score. Here’s how TransUnion breaks it down: To put things into perspective, the average credit card interest rate is 22.83%, according to the latest Fed data. If you make monthly payments of $250 on a balance of $9,711, it would take you six years to pay it off.
What’s Behind Rising Credit Card Debt?
Inflation currently sits at about 3%, which is higher than the Fed’s target of 2%. Higher prices for goods and services paired with a challenging job market can drive up credit card balances. Plus, prices on consumer goods are elevated due to widespread tariffs imposed by the Trump administration.
Another reason for the increase in credit card debt could be a reduction in income and employment. According to recruitment firm Challenger, Gray & Christmas, U.S. employers announced more than 1.1 million job cuts this year so far, the largest number of job cuts since 2020. “Cards are often used as a stopgap for a lack of income,” says John Ulzheimer, a credit expert formerly with FICO and the credit bureau Equifax. “That leads to larger balances and larger minimum payments.”
[Read: Cards for Bad Credit]
Getting Out of Credit Card Debt
Getting out of credit card debt can be tough, but becoming debt-free starts with consistent action. There are a number of methods you could employ that will work for your financial situation. From the debt snowball to the debt blizzard method, each offers its own set of benefits depending on your situation.
Prioritize paying off debt aggressively if it’s within your means, or at least make minimum payments if larger payments aren’t within reach. If you can’t make any headway on your credit card debt, consider working with a nonprofit financial counselor on a debt management plan.
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What’s the Average Amount of Credit Card Debt in the U.S.? originally appeared on usnews.com
Update 12/19/25: This story was published at an earlier date and has been updated with new information.
