Why Nearly Half of Americans Still Carry Credit Card Debt—And What You Can Do About It

Credit card balances are rising—and so are delinquencies. Discover practical debt solutions and relief options that can help you break free.

In November 2024, nearly half of American credit cardholders (48%) reported that they carry a balance from month to month, according to a Bankrate survey.

While this figure has remained relatively stable compared to recent years, it's a significant jump from 39% in 2021—a sign that many Americans continue to face deep financial strain.

Whether it's inflation, emergency expenses, or rising interest rates, more Americans are struggling to keep their debt under control. The numbers aren’t just alarming—they’re a wake-up call.

The Growing Burden of Credit Card Debt

Since early 2021, credit card balances have surged by 51%, and delinquencies have reached levels not seen since 2011, according to the Federal Reserve. With the average interest rate on credit cards climbing above 20%, carrying a balance has become increasingly expensive.

Rossman from Bankrate explains, “High inflation and high interest rates have been a nasty combination, and while the worst is behind us, the cumulative effects are significant and will linger.”

This means that many Americans aren’t just paying for what they spent—they’re paying extra, often for months or even years, thanks to interest compounding.

The Psychological Toll of Persistent Debt

Living with credit card debt for extended periods doesn't just affect your wallet—it affects your mental health, your ability to make big financial decisions, and even your relationships.

Carrying debt from month to month means you may have to delay important goals, such as:

• Buying a home
• Saving for retirement
• Starting a business
• Building an emergency fund
• Taking a well-deserved vacation

If this sounds familiar, know that you’re not alone—and there are proven debt relief strategies that can help.

What Is Debt Relief?

Debt relief refers to programs and strategies designed to reduce or restructure your debt so that it becomes more manageable. It’s not a one-size-fits-all solution, but rather a range of options that can be tailored to your situation.

Let’s explore the most effective debt solutions for those struggling with high-interest credit card balances:

Top Debt Solutions to Consider

1. Debt Consolidation

A popular debt relief option, debt consolidation involves combining multiple debts into a single loan with a lower interest rate. This simplifies monthly payments and can help reduce the total amount of interest paid over time.

Ideal for: People with multiple high-interest credit card balances.

2. Debt Management Plans (DMPs)

Offered by non-profit credit counseling agencies, a DMP allows you to make a single monthly payment, which is then distributed to your creditors. These plans often come with negotiated interest rate reductions.

Ideal for: Individuals who want structure and professional support in repaying debt.

3. Debt Settlement

If you’re unable to repay your full debt, settlement allows you to negotiate with creditors to pay less than what you owe. It can hurt your credit temporarily, but it offers a path toward becoming debt-free.

Ideal for: People who are severely behind on payments and considering bankruptcy.

4. Balance Transfer Credit Cards

These cards offer 0% APR promotional periods, allowing you to transfer high-interest balances and pay them off interest-free over a set period.

Ideal for: Those with good credit who can pay off the balance during the promotional window.

5. Bankruptcy (Last Resort)

While not ideal, Chapter 7 or Chapter 13 bankruptcy may be the best debt solution for some individuals. It eliminates or restructures unsecured debts but can stay on your credit report for up to 10 years.

Practical Steps Toward Debt Relief

If you're among the 48% carrying credit card debt, here are some immediate steps to get started:

✅ List all debts and interest rates to prioritize which balances to tackle first.
✅ Create a budget and identify expenses you can cut or reduce.
✅ Explore debt consolidation options with a financial advisor or counselor.
✅ Avoid new debt—pause on large purchases until you have control.
✅ Look for professional guidance from reputable debt relief agencies.

Final Thoughts: You're Not Alone

The rising number of Americans carrying long-term credit card debt is a clear indicator of ongoing financial hardship. But there is a path forward. With the right debt solution, it’s possible to regain control of your finances and finally achieve long-term debt relief.

Don't wait until debt becomes unmanageable. Start exploring your options today—and take the first step toward financial freedom.

Need help finding the best debt relief solution for your situation?
Visit www.mitigately.com to learn how our tools and resources can help you take control of your financial future.