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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