A new survey from Debt.com exposes the mounting credit card debt crisis facing American households in 2025, with 37% of respondents using credit cards regularly just to make ends meet. The national poll of 1,000 adults reveals that 32% have maxed out their credit cards, reflecting the continuing economic strain from persistent inflation.
Generational data shows varying levels of financial stress, with Millennials (42%) and Gen Xers (39%) experiencing the highest rates of maxed-out credit cards. Over 63% of respondents carry a credit card balance, and more than 20% owe over $10,000, underscoring the severity of the debt landscape.
The survey coincides with a bipartisan legislative effort by Senators Alexandria Ocasio-Cortez and Anna Paulina Luna to cap credit card interest rates at 10%. This proposed intervention aims to provide relief for consumers facing astronomical interest rates, some exceeding 24%.
Howard Dvorkin, CPA and Chairman of Debt.com, emphasized the critical nature of financial awareness, noting that 27% of survey respondents do not even know their annual percentage rate (APR). Despite the growing debt burden, 57% of respondents have never explored debt relief options such as credit counseling or debt consolidation.
The economic backdrop further complicates the situation, with the University of Michigan's Consumer Sentiment Index showing declining consumer confidence. Persistent inflation, high borrowing costs, and economic uncertainty continue to challenge household financial stability.
As Americans navigate these complex financial waters, the Debt.com survey serves as a stark reminder of the ongoing economic pressures and the urgent need for financial education and strategic debt management.
