2025 Data: Half of Americans Have Credit Card Debt, and a Quarter Sink Deeper Every Month

The Average American’s Debt Profile | Credit Card Responsibility and Unaffordable Purchases | How Credit Card Debtors Handle Balances | Missed Credit Card Payments and the Reasons Why | Frequent Credit Card Offers and Applications | Many Don’t Understand Credit Basics | Buy Now, Pay Later 

Just a few generations ago, the day-to-day financial horizons of most ordinary people were limited to the money in their pockets or the value of their reputation at their local stores.

But 75 years ago, that all changed when Diners Club introduced the first modern credit card, inspired by a businessman’s discovery that he’d lost his wallet while trying to pay for a dinner with clients. In the decades since, these humble pieces of plastic have transformed the world’s financial landscape.

On the one hand, millions of shoppers no longer need to scrupulously monitor how much cash they have on hand or risk carrying large amounts for significant purchases while also earning valuable rewards, such as cash back or travel points. Credit cards also eliminated the delays and uncertainty associated with personal checks, making them an equally attractive option for stores.

However, credit cards also unlocked countless new ways for Americans to get themselves into financial trouble, including overspending, mismanaging their payments, and accruing significant and growing debt. 

It has left many with a decidedly mixed view of the cards — one that, for better or worse, may make some wary of even using these powerful financial tools.

To find out more, Clever Real Estate conducted a survey of 1,000 Americans, gathering details on their credit card usage and debt, as well as their attitudes toward cards and their impact on their financial lives. 

The survey found a majority of Americans (53%) have credit card debt, carrying an average balance of $7,719, while more than 1 in 4 (29%) say they wouldn’t be able to afford essential living expenses without a credit card.

Meanwhile, 53% would like to reduce their credit card usage, including 71% of those who are currently in debt. At the same time, 1 in 4 (25%) of those who don’t currently have credit card debt are worried they might fall into it in the next five years.

Read on to learn how credit card debt is impacting the lives of those dealing with it, as well as how those who’ve avoided it have managed to stay debt-free.

The Average American’s Credit Card Debt Profile: Averaging $7,700 in Debt, With a Quarter Sinking Deeper Into Debt Monthly

Credit card debt certainly isn’t rare in 21st-century America. A majority of Americans (53%) carry some, with an average balance of $7,719.  

However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Those who own homes have an average balance 37% higher than those who don’t – $8,486 versus $6,214. However, regardless of the level, credit card debt of any kind is more common among renters (60%) than homeowners (51%). 

Meanwhile, all generations are relatively similar when it comes to the percentage in credit card debt, ranging from 55% of millennials to 47% of boomers.

With all this in mind, it should be no surprise that 58% of those with credit card debt feel stressed about it. 

That’s understandable when paying their credit card bill takes up a huge portion of the typical budget. The average American puts 30% of their monthly take-home pay toward paying off their credit card, although roughly 1 in 5 (21%) spend over half of their take-home pay on this. 

Making even the minimum payment on their bill each month is difficult for 1 in 3 of those in credit card debt (33%), and an alarming quarter of Americans with credit card debt (27%) say they go deeper into debt every month.

A Quarter of Americans Not in Credit Card Debt Worry They Might Fall Into it Within 5 Years

Just because someone has managed to get through the economically tumultuous past few years without credit card debt doesn’t necessarily mean they feel like they’re on firm financial footing.

Even among those who’ve avoided falling into credit card debt so far, 1 in 4 (25%) are worried it might happen to them in the next five years.  Still, that’s a slight decline from the 31% of debt-free Americans who worried about this in 2023, closer to the peak of post-COVID inflation and home price increases. 

Early-career Gen Z is most concerned about potentially falling into credit card debt over the next five years. Over a third (35%) say so, nine percentage points more than millennials (26%) and 15 percentage points more than boomers (20%). 

The same goes for renters versus homeowners: 33% of the former are worried about falling into credit card debt, while just 23% of the latter say the same.

4 in 10 Americans Have Carried Credit Card Debt for at Least 5 Years, But Half Think They’ll Pay it Off in a Year or Less

For reasons both objective and personal, Americans are generally pretty down on the idea of credit card debt. 

About 59% of Americans see credit card debt as the worst kind of debt, with 40% saying it’s never acceptable to have. This could explain the similar number (37%) who say they’ve never been in credit card debt. 

However, credit card debt isn’t new to many who carry it. About 40% say they’ve been in debt since at least 2020, and over 1 in 5 (21%) say their debt stretches back at least a decade, to 2015 or earlier. 

Despite the long-term nature of this debt for many, a large portion seems fairly optimistic about it. Almost half of Americans with credit card debt think they’ll be able to pay it off within a year (48%). On the other hand, more than 1 in 8 indebted Americans (15%) see a particularly long road to paying off their debt, saying it’ll take them five years or more. 

Most foresee paying off their debt gradually through budgeting and savings (64%) or spending less (57%), rather than through any major life changes, such as getting a higher-paying (18%) or second job (15%) or moving to a more affordable area (7%). 

Three-Quarters of Americans Say They’re More Responsible Than Average, But Over Half Regularly Make Purchases They Can’t Pay Off

In a world of seemingly ever-increasing expenses, it makes sense that over half of Americans (53%), including 71% of those in credit card debt, would like to reduce their credit card usage. However, it’s not because they necessarily see any problem with how they’ve handled their credit in the past. 

An eyebrow-raising three-quarters of Americans (75%) believe they’re more responsible than average with their credit cards, including nearly two-thirds of those with credit card debt (64%).

Other responses may tell a different story. For example, a majority of Americans (54%) say they buy something on their credit card that they can’t immediately pay off at least once a year. Nearly a quarter (23%) do this at least every month.

Meanwhile, about 1 in 8 Americans (11%) say they put every major expense on their credit cards. This is twice as common among those with no credit card debt (15%) as those with it (7%) and among homeowners (13%) as non-owners (6%). This suggests the behavior is just as likely to be a move to maximize rewards among financially stable individuals as a sign of budgetary distress. 

Those certainly aren’t the only signs that Americans may not be as responsible and prudent with their credit card spending as they might first believe. 

A third of all Americans (35%) and 44% of those in credit card debt say they’ve regretted a large purchase they’ve made with a credit card. 

A majority of Americans (52%) also admit to making impulsive purchases on their cards at least every few months, with 29% doing so at least monthly. This is far more common among those with credit card debt (84%) than those without (63%). 

There’s also a strong emotional element to credit card use that may not be present in other payment methods. A third of Americans (33%) tend to spend more on their credit cards when they’re happy, while around a quarter (24%) say they do more credit card spending when they’re sad.

In general, regardless of how they’re feeling, half of Americans (50%) tend to spend more when using credit cards versus cash or debit, including 57% of those in credit card debt. 

1 in 4 Americans Couldn’t Afford Essential Expenses Without Credit Cards

Credit cards may have started as a convenience, but for many in modern America, they’ve become a true necessity. Even if Americans are somewhat wary of credit cards, a troubling 39% say they couldn’t afford a $2,000 emergency without using one. 

Even worse, over a quarter of respondents (29%) say they couldn’t afford essential living expenses without a credit card. This includes 37% of those currently carrying balances and 35% of Americans who don’t own homes.

Americans with credit card debt are more likely to use their cards for unavoidable expenses, such as:

• Emergency pet costs, with 28% of those in credit card debt doing so, compared to 17% of those without
• Rent or mortgage payments, with 13% of those in credit card debt doing so, compared to 7% of those without
• Child care, with 9% of those in credit card debt doing so, compared to 3% of those without 

Rising housing costs, such as rent or mortgage-related expenses, have motivated over a third (36%) of Americans to rely more on credit cards. At the same time, almost 1 in 5 non-homeowners (18%) have put their rent payments on a credit card, while just 7% of homeowners say the same about their mortgages.

It’s the only example among those surveyed where non-owners were more likely than homeowners to charge a major expense.  

More Than a Third of Those in Credit Card Debt Have Paid One Card’s Bill With Another

Debt can feel like a burden in many cases, but high-interest, easy-to-incur credit card debt may be particularly anxiety-inducing. Nearly half of those in credit card debt (48%) say making their payments on time stresses them out. 

Over a third (36%) of those in credit card debt have even resorted to paying one card’s bill by putting the payment on another. 

For a majority of those in credit card debt, the cause is as straightforward as it gets: 54% say they spend more than they earn. A nearly identical 53% of credit card debtors say they’ve maxed out a card at some point, 31 percentage points higher than those without credit card debt (23%). 

Plenty of budget categories can contribute to credit card debt, but the top three are likely familiar culprits: 

• Spending on essential purchases, such as groceries, gas, and prescriptions (72%)
• Paying bills, such as utility bills, phone bills, etc. (64%)
• Paying off other debt (53%)

However, half of those in credit card debt admit it happened because of their own excessive spending and bad financial choices (50%) on less-than-vital expenses, such as:

• Going on vacation (49%)
• Making a major tech purchase (e.g., TV, computer, phone, etc.) (48%)
• Making nonessential purchases (e.g., concert tickets, sporting events, video games, etc.) (44%)

These numbers might not even reflect the full picture of questionable spending. Almost a fifth of Americans (18%) concede they don’t track their credit card spending. This includes 21% of those in credit card debt but just 14% of those without it. 

Major life events, both deliberate and unplanned, are also top sources of credit card debt among Americans: 

• Illness or medical emergency for themselves or someone within their household (44%)
• Job loss (33%)
• Having a child or paying for child care (26%)

In addition, over 1 in 5 of those in credit card debt (22%) say they’ve hidden a purchase from their significant other. That’s twice the number of those who aren’t in credit card debt (11%), suggesting that many of those who end up in debt are aware their purchases may not fit within their budget when they make them. 

Nearly Half of Americans With Credit Card Debt Say It’s Preventing Them From Living the Life They Want

Whether it’s due to undisciplined spending or financial hardship, the result of credit card debt is clear. Almost half of those in it (44%) say their debt has prevented them from living the life they want.  

Those with credit card debt are far more likely than those without it to say their credit card usage has prevented them from doing a wide range of things, including:

• Building an emergency fund/emergency savings (48% for those in debt versus 18% without)
• Taking a vacation (41% for those in debt versus 19% without)
• Saving for retirement (41% of those in debt versus 16% without)
• Making nonessential purchases (36% of those in debt versus 17% without)

Nearly a quarter of those with credit card debt say they’ve delayed buying a home because of credit card debt (23%) or had their debt affect their ability to qualify for a mortgage (22%). 

Other than mortgages, those with credit card debt are also more likely to be in other forms of debt across the board. They’re over 3x more likely to be in personal loan debt (25% versus 7%) and medical debt (24% versus 7%) than those without credit card balances. 

Additionally, credit card debtors (35%) are nearly 3x more likely than those without credit card debt (13%) to say their credit card usage has kept them from paying off other debt. 

Too Much Interest, Too Many Impulse Purchases Are Among Top Regrets for Debtors

A hefty amount of credit card debt often brings plenty of regrets alongside the high interest payments and extra fees. About 88% of those in credit card debt have regrets about their credit card spending.

The top regrets among Americans in credit card debt include: 

• Paying too much interest (34%)
• Carrying a balance instead of paying in full each month (32%)
• Making impulse purchases (30%)
• Overspending on nonessentials (27%)

For each of these regrets, those in credit card debt are roughly 2x to 3x more likely to experience them than those who don’t have credit card debt. Overall, credit card debtors are more likely to regret every credit card behavior surveyed across the board.   

It’s worth noting, however, that 45% of those without credit card debt say they have no regrets at all about their credit card spending. 

The Secrets to Avoiding Credit Card Debt: Early Financial Education, Frugal Budgeting, or a High Income

The habits and patterns of Americans who have avoided ending up in credit card debt paint a picture of a broadly conscientious financial lifestyle. 

Nearly half of Americans who have never had credit card debt say it’s because they were taught good financial habits early on by parents or schools (45%) or never spend more than what they have in their bank account (45%). 

Meanwhile, 42% say it’s because they either spend frugally or budget carefully and track all or most of their spending.

Outside of generally financially responsible behaviors, credit card-specific ones are popular, too. More than a third of those who’ve never had credit card debt consistently monitor their card balances throughout the month (36%), and about a quarter pay off credit card purchases soon after they make them, rather than waiting for the bill (23%).

However, 26% say they’ve avoided credit card debt simply because they have an income substantially higher than their expenses.

Although these lucky or responsible individuals have avoided ending up in debt, they’re not always financially prudent. Roughly 40% of those currently without credit card debt say they still carry a balance from time to time. 

Roughly 1 in 3 Americans Have Missed a Credit Card Payment Since 2020

Missing a credit card payment can be a frustrating and costly experience but one that’s apparently relatively common. Nearly half of Americans (45%) say they’ve missed at least one at some point in their lives.  

In fact, approximately 1 in 3 Americans (32%) say they’ve missed a credit card payment since 2020, a sign of the uneven and tumultuous recovery from the COVID-19 pandemic. 

Among those who’ve ever missed payments, 80% say they’ve missed more than two in the past five years. An especially troubling 28% have missed more than five credit card payments since 2020, and 1 in 8 (13%) have missed more than 10, a sign of profound financial distress. 

Those with credit card debt (73%) made up a substantially larger portion of those who have missed payments over the past five years compared to those who have not (27%). 

It’s possible that missed payment data may reveal some warning signs for the economy. Over a quarter of those who have ever missed payments (27%) say they most recently missed one sometime in 2025. 

Meanwhile, those with multiple credit cards (49%) are much more likely to have missed a payment compared to Americans with just one (37%).

A little discipline and planning could seemingly go a long way toward eliminating financially harmful missed payments. Simply forgetting to make the payment (39%) is the most common reason for missed payments among those who’ve missed one since 2020. 

With this in mind, it’s worth noting that almost 1 in 5 of those who’ve never had credit card debt (18%) say setting up an automatic payment for their cards has helped keep them debt-free.

For others, missed payments resulted from having to divert funds to pay for an unexpected emergency (30%), food or other groceries (28%), or utility bills (27%). About 23% have missed payments because they needed to pay their rent or mortgage.

Almost 1 in 5 payment missers (18%) ended up in that situation because they lost their jobs, and with them, the income to make payments. 

These sometimes unavoidable situations are substantially more common than those who missed payments because they spent too much on nonessentials (16%) or made a large one-time purchase, such as a wedding or vacation (11%). 

60% of Americans Get Credit Card Offers Monthly, and 1 in 5 Apply for One Every Few Months

Credit cards can seem difficult to avoid in modern society, whether a person actually has any interest in signing up for one. 

About 60% of Americans say they receive credit card offers or preapprovals in the mail at least once a month, and over 1 in 4 (28%) get them weekly, providing plenty of opportunities to expand their credit – for better or worse. 

The odds of getting a new card seem to be pretty good for those who want one. Only 31% of Americans say they’ve ever been denied on a credit card application. As a result, a third of Americans (33%) say they apply for a new card at least once a year, and a stunning 1 in 5 (21%) put in an application every few months.

The motivations of those who apply for a card monthly or every few months differ in some notable ways from Americans overall. Those who apply monthly (20%) are more than twice as likely to say they’ve applied because they maxed out other cards compared to all Americans (9%). Monthly applicants are also more than 3x as likely to apply for a card as a status symbol (18%) versus Americans overall (5%). 

Juggling multiple credit cards is a way of life for 70% of Americans, including 15% who regularly alternate between four or more. Millennials are most likely to be among these heavy multicard users, with nearly 1 in 5 (19%) using four or more, compared to 7% of Gen Z and 14% of boomers.   

Those with multiple cards are substantially more likely to have credit card debt (58%) than those with only one (44%). 

Americans are fairly divided when it comes to the most important factors in considering a new credit card. Around a quarter select a card with:

• A low or no annual fee (29%) 
• A low interest rate (27%)
• High rewards (25%) 

Fewer than 1 in 10 (9%) say the often lucrative sign-up bonuses are most important. 

Those with credit card debt (38%) are more than twice as likely to say low interest rates are most important compared to those without (15%). 

Conversely, Americans without credit card debt are more likely to prioritize cards with low or no annual fees (33% without debt versus 25% of those with debt) and high rewards (33% without debt versus 18% of those with debt). 

More than 1 in 4 Americans (27%) admit to opening a credit card without doing prior research, such as at a store to save on a purchase.

About a third of those in credit card debt (31%) admit to signing up for a card specifically to cover purchases they couldn’t afford – roughly 3x the number of those without credit card debt who’ve done this (11%). 

Credit card debtors (12%) are also twice as likely as those without debt (6%) to say they’ve applied for a card because they’ve maxed out others.

A Third of Americans Have Applied for Cards Solely for Sign-Up Bonuses and Rewards

Cash is king in the world of credit card rewards. Americans overwhelmingly prefer cash back as their top credit card reward, with 56% saying it’s most important. That’s 4x the next most popular choice, travel rewards (14%).

A travel rewards card (26%) is also the type Americans would be least likely to apply for.

Chasing rewards can be a risky strategy in some cases. Roughly 1 in 4 Americans (24%) have put a large group purchase, such as travel expenses or dining out, on a credit card to earn rewards, only to end up in debt because others never paid their shares.

Overall, 70% of Americans would support a law that lowered credit card interest rates from current levels and capped them, even if it also led to issuers reducing or eliminating rewards.

There’s a dramatic difference in approval for this potential law between those in credit card debt (78%) and those who aren’t (60%). That’s likely explained, at least in part, by the fact that 75% of Americans believe credit card rewards encourage people to spend more than they should.

Meanwhile, more than a third of Americans (37%) say sign-up bonuses and rewards are among the reasons they’ve applied for a credit card, while another 8% say they’ve specifically applied for a card for access to exclusive places or events, such as airport lounges or celebrity meet-and-greets. Together, these showcase the value these benefits have in drawing in new customers.

Rewards aren’t just an attraction for applying, either. Many people seem to rely on them on a regular basis, with over a third of Americans (36%) saying they cash in rewards every month.

If a law reducing rewards were really passed, there’s no doubt the changes would dramatically alter the nation’s financial landscape. Although Americans would react in a variety of ways, nearly three-quarters (74%) would change their behavior with credit cards in response. 

Nearly 1 in 3 Americans (30%) say they would use credit cards less, with 20% saying they’d use them only for emergencies. In addition, nearly 1 in 7 (14%) would cancel some cards, and a similar number would switch to a lower-interest card (16%) or one with a lower annual fee (16%). 

Many Americans Don’t Know the Impact of Credit Cards, Their Interest Rate

Many of the poor decisions and mistakes Americans make involving credit cards may be the result of ignorance of how they work or of their personal credit situation. Around 1 in 8 Americans admit they don’t understand how their credit card use affects their credit score (11%) or even know their credit limit (12%).

A third (34%) don’t know their credit card’s interest rate, including 27% of those who are currently in credit card debt, who are paying that very rate on their balances every month.

Although only 15% of Americans say they don’t know their credit scores, this figure rises to nearly 1 in 4 renters (23%). This could spell unexpected trouble for them if they look to buy a home in the future without first establishing sufficient credit.

It’s not just ignorance either — a simple lack of diligence is also a common problem. Only half of Americans (50%) say they check their credit card statements monthly for accuracy. 

This may be an obvious reason why a similar 48% — including 57% of those in credit card debt — at least occasionally discover an ongoing payment they forgot about, such as a streaming subscription or gym membership. About 1 in 4 (24%) discover one of these forgotten subscriptions every month or more.

Failing to regularly check statements is likely also a contributor to “bill shock,” where a credit card statement comes in substantially higher than expected, something 38% of Americans experience at some point in their lives. 

1 in 4 Americans Have Used Buy Now, Pay Later Services For Essentials, Half Think They’re Riskier Than Credit Cards

The concept of buying on credit is certainly nothing new, but fresh ways to pay over time are still emerging and growing in popularity. In recent years, this has been the services commonly known as buy now, pay later (BNPL). 

Companies such as Affirm, Afterpay, and Klarna work with retailers to enable customers to split just about any kind of purchase into a handful of monthly payments, often at relatively low interest rates. 

Roughly a third of Americans (35%) have used a buy now, pay later service, with those in credit card debt (44%) substantially more likely to have done so than those without (25%). 

About 1 in 8 Americans (13%) currently has BNPL debt, which rises to 1 in 5 of those with credit card debt (20%). A quarter of those in credit card debt (24%) also admit to falling behind on buy now, pay later payments, compared to 10% of Americans without credit card debt. 

More than half of respondents (54%) believe buy now, pay later services are riskier than traditional credit cards.

Some of this may be the hesitation that comes with any new technology, but experts have criticized BNPL programs for their frictionless nature and ability to rack up large amounts of debt easily, while others have noted they may not have the same scrutiny as credit cards, as they only perform a “soft” credit check. 

Among those who use BNPL programs, most simply use them to split up larger purchases, such as electronics or furniture (54%). However, 36% admit using them for nonessentials, such as clothes or entertainment, and roughly a third (32%) say they use them to avoid another charge on their credit card.

Perhaps most concerningly, more than 1 in 4 of those who use buy now, pay later services (26%) have used them for essentials, such as their groceries or a utility bill.  

At the end of the day, it may not matter much how the purchase is initially made. About 41% of Americans say they at least occasionally make buy now, pay later payments with their credit card, meaning there’s not much difference in the end for those looking to avoid the risk of credit card debt.  

Methodology

Clever Real Estate conducted an online survey of 1,000 U.S. adults Sept. 18, 2025. The survey examined their experiences with credit card usage, debt, and their perspectives on the impact these factors have on their lives and finances.

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. Twelve million annual readers rely on Clever’s library of educational content and data-driven research to make smarter real estate decisions — and to date, Clever has helped consumers save more than $210 million on Realtor fees. Clever’s research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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