American household debt continues to climb to record levels, with credit card balances reaching $1.23 trillion, auto debt at $1.66 trillion, and student loan debt growing to $1.65 trillion, according to recent Federal Reserve data. These figures represent a $49 billion increase in non-housing balances in a single quarter, highlighting a deepening financial burden for millions of consumers who increasingly rely on multiple forms of high-cost borrowing.
The growing debt load is creating significant financial strain, with many Americans making only minimum payments that extend their debt obligations for years. "Too many Americans are stuck paying just enough to survive their debt, not escape it," says Howard Dvorkin, CPA and chairman of Debt.com. "When households rely on minimum payments, debt quietly becomes a long-term financial trap."
Credit card balances jumped $24 billion in the third quarter of 2025, nearly 6% higher than the previous year, while retail and consumer finance borrowing increased by $10 billion to $550 billion, often driven by buy-now-pay-later financing and store cards. Auto debt reflects the ongoing cost of transportation amid elevated prices and interest rates, while student loan balances increased by $15 billion after a period of relative stability.
Debt Awareness Week, held February 16-22, aims to address this growing crisis by helping consumers understand their options for regaining financial control. The initiative offers practical 7-Day Action Steps that guide individuals through specific tasks including listing debts, identifying interest rates, reviewing spending patterns, calculating debt-to-income ratios, checking credit reports, and setting both short- and long-term debt goals.
The cornerstone of the awareness campaign is Debt.com's Debt-Free Day Calculator, an interactive tool that helps consumers visualize how much of their working life is dedicated to paying off debt. Users input their total personal debt and annual income, and the calculator converts the results into the number of days needed to work exclusively to pay off their obligations, displaying a personalized "Debt-Free Day" on a calendar.
"Our Debt-Free Day Calculator gives users clarity and a true picture of their financial well-being," says Don Silvestri, President of Debt.com. "It shows how many days you must work just to pay off debt, and that realization can be powerful." For the average American earning $62,000 annually, paying off $15,000 in debt would require over three months of full paychecks if every dollar went toward debt repayment.
As debt levels continue to rise nationwide, the initiative underscores the importance of helping consumers move beyond minimum payments and understand the true long-term cost of their financial obligations. By promoting financial education and practical tools, Debt Awareness Week aims to provide Americans with the clarity needed to take control of their financial futures amid increasing economic pressures.
