American credit card debt has reached a record $1.17 trillion according to the Federal Reserve's latest consumer credit report, with average APRs remaining above 22% despite Federal Reserve rate cuts.
The Debt Picture
Revolving credit has grown for 26 consecutive months, with the average American household carrying $10,400 in credit card balances.
- Total credit card debt: $1.17 trillion (up 8.2% year-over-year)
- Average APR: 22.4% (down only 0.6% despite two Fed rate cuts)
- Minimum payment delinquencies (60+ days): 3.2%, highest since 2011
- Consumers aged 25-34 show the fastest debt growth rate at 14% year-over-year
Expert Advice
Financial counselors recommend aggressive balance transfer strategies while 0% APR promotional offers remain available, typically 15-21 months. The avalanche method — targeting the highest-rate card first — can save thousands in interest. Consumers should avoid minimum-payment traps that can extend repayment timelines to 20+ years.
