What Is the Average Credit Card Balance in the U.S.?
- One in four Americans has at least $10,000 of credit card debt.
- The average American with credit card balances has $7,528 in credit card debt.
- Debt relief strategies such as debt consolidation and debt settlement could help you get rid of credit card debt sooner.
If you’re carrying some credit card debt, it makes sense you’d want clearer information and a path forward—you’re taking an active step toward getting more control. Many Americans struggle to pay their credit card statements in full. Instead, they carry a balance. Since credit cards typically have high interest rates, unpaid credit card debt can grow quickly. You may be surprised at the size of the average credit card balance in the United States.
Even if you have a significant amount of credit card debt, you can make changes so you can enjoy financial freedom. It's possible to live a debt-free life. Find out the average credit card balance in the U.S. and what steps you can take to get credit card debt relief.
One in Four Americans Has at Least $10,000 in Credit Card Debt
Financial services company Empower recently polled Americans with credit cards who carry a credit card balance to better understand how much credit card debt Americans have. Here are some of the findings:
One in four Americans with credit card balances has $10,000 or more in credit card debt.
42% have $5,000 or more in outstanding credit card debt.
The average credit card debt per person is $7,528.
These survey findings align with recent data from the Federal Reserve Bank of New York. In the first quarter of 2025, the national average credit card debt among cardholders with unpaid balances was $7,321. This is an increase of 5.8% from $6,921 one year earlier.
While credit card debt is common among Americans, a path toward a debt-free life is possible.
Strategies to Be Free of Credit Card Debt
The stress of unpaid credit card debt doesn’t have to keep you from enjoying life. It's possible to ditch your debt, and having a plan for paying off your debt can help you be more successful. Here are a few strategies that could help you put your credit card debt behind you.
Debt consolidation
Debt consolidation combines multiple debts into a single debt. Debt consolidation could save you money in interest and make debt repayment more manageable. Here are two ways to consolidate credit card debt.
Debt consolidation loan. This involves taking out a new loan and using it to repay multiple debts. Then you make regular monthly payments on the new loan until it's repaid. If you qualify for a debt consolidation loan with a lower interest rate, it could be a great strategy to make your debt easier to repay. Personal loans are a popular debt consolidation tool. If you're a homeowner, you might consider a home equity loan or HELOC for debt consolidation.
Balance transfer credit cards. These cards offer an introductory 0% APR for a set time period. At the end of that period, the interest rate resets to a much higher interest rate. If you qualify for a balance transfer offer, you could transfer one or more existing credit card balances and benefit from no additional interest during the promotional period. This could help you make more headway against your debt with each payment.
Most cards charge a balance transfer fee (typically 3% to 5% of the transferred amount). Balance transfer works best as a one-time strategy with a clear plan for paying off the balance before the end of the introductory interest rate period.
Debt settlement
Debt settlement involves negotiating with your creditors to accept less than you owe and forgive the rest. This debt relief strategy could make your debt more manageable to repay and help you clear debt faster than by making minimum payments. You could take a DIY approach to debt settlement or work with a professional debt settlement company.
Debt management plan
If you can afford your debts but want guidance and structure, consider enrolling in a debt management plan (DMP). A credit counselor creates a customized plan to repay all your unsecured debts, such as personal loans or credit card debt. You make a single monthly payment. Most DMPs require that you close your credit card accounts.
Choose a Debt Relief Strategy That Is Best for You
Don't assume that a debt-free life is out of reach. Your current situation isn't forever. You can create a plan to shut the door on credit card debt for good.
Ready to tackle your credit card debt? You don't have to navigate your debt journey alone. Freedom Debt Relief is ready to help you navigate to a better financial future. Talk to an expert about whether you’re a candidate for credit card debt relief.
Author Information
Written by
Natasha Etzel
Natasha is a contributing writer for Freedom Debt Relief. She is a veteran professional financial writer. She provides realistic strategies to help readers improve their knowledge and change their financial situations.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How much total debt is too much?
A key sign that you have too much debt is struggling to make your payments month to month. Another red flag is if you usually carry a credit card balance. Even if you're keeping up with your payments, carrying a credit card balance dramatically increases the cost of everything you buy with the card. Look at the total year-to-date interest charges on your next credit card statement and ask yourself if you'd rather have that money in the bank. If the answer is yes, you might have too much credit card debt.
What happens if you don't pay off a credit card?
If you don't pay your credit card off and carry a balance month to month, you'll likely pay interest and finance charges. If you stop paying your card altogether, the credit card company could contact you to ask for payment. They could assign your account to a debt collection agency and in a worst-case scenario, you might be sued for the debt.
How can I pay my credit card debt fast?
You could use a DIY method, like the debt snowball or avalanche. Alternatively, you could consolidate your debt—that means using a new loan to pay off all your cards. Another option is making a balance transfer into one credit card.