U.S. Household Credit Card Debt Hits New Highs Amid Cost-of-Living Strain

American households are grappling with rising credit-card debt, as new data indicates the total has climbed to approximately US$1.33 trillion. 

This record level highlights mounting pressure on many consumers who are using credit cards to cover essentials such as groceries, fuel and everyday bills.

One key driver: despite slight reductions in interest-rate forecasts, the average credit-card annual percentage rate (APR) remains above 20%, meaning borrowing via revolving credit remains costly. 

Add to this the persistent inflation and stagnant wage growth for many households, and the result is a financial stress point that is harder to ignore.

The burden is especially pronounced among mid-income households: for example, the generation born between 1965 and 1980 (Gen X) carries the largest average balance among age groups. 

Financial counselors note that as borrowing becomes more expensive, consumers may delay payments or carry high balances, which in turn may damage credit scores and restrict future borrowing. 

What does this mean for the broader economy? Elevated consumer debt levels can undermine spending in other areas, reduce savings rates and heighten vulnerability to interest-rate hikes or job disruptions.

In response, some credit-card issuers are offering debt-management tools, but the core challenge remains one of balancing everyday costs with high-cost borrowing. Unless inflation eases and borrowing costs come down meaningfully, the debt trend is unlikely to reverse quickly.