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How much credit card debt is too much right now? Experts weigh in

How much credit card debt is too much right now? Experts weigh in

Summary

Credit card debt in the United States has reached a record $1.23 trillion, with the average borrower owing nearly $6,600. Experts advise keeping credit card balances below 30% of your available credit to avoid harming your credit score and financial health.

Key Facts

  • Americans’ total credit card debt hit $1.23 trillion in the last quarter of 2025, increasing by tens of billions from the previous quarter.
  • The average credit card balance per borrower is about $6,600.
  • Credit cards currently have an average interest rate of over 21%, making debt grow quickly if not managed.
  • Keeping credit card balances under 30% of your total credit limit helps protect your credit score and provides financial flexibility.
  • Once balances exceed 30% of available credit, credit scores can drop and making minimum payments may become difficult.
  • Inflation has increased everyday costs, pushing more consumers to rely on credit cards.
  • Warning signs of too much debt include stress about money, only making minimum payments, late or missed payments, and using cash advances frequently.
  • To manage debt, experts suggest stopping new spending and focusing on paying down existing balances quickly.
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