What Percentage of Credit Card Holders Carry a Balance?

Credit cards can be a useful financial tool when used responsibly. However, carrying a balance from month to month can quickly lead to overwhelming debt due to high interest rates. So what percentage of credit card holders carry a balance and face this financial risk? Let’s take a look at the stats.

Key Stats on Credit Card Debt

Recent surveys and studies have revealed the following key statistics about credit card debt in America:

• 48% of credit card holders carry a balance. According to a November 2024 Bankrate survey, nearly half of credit cardholders report having a balance from month to month This is up from 39% in December 2021, indicating debt may be on the rise

• The average credit card balance is around $6,500. As of Q4 2024, the average credit card balance for indebted households was $6,506, according to Experian data. That doesn’t sound like much, but at an average interest rate near 20%, debt can snowball quickly.

• 71% think they’ll pay off their balance in 5 years. Per Bankrate’s survey, close to three-quarters of credit card debtors believe they’ll eliminate their balance in five years or less. However, 6% feel they’ll never get out of credit card debt.

• More than half have carried a balance for over a year. Among credit card debtors, 53% have been in debt for at least 12 months, Bankrate found. 22% of the highest income households reported carrying debt for five years or more.

• Women and lower-income cardholders are more likely to carry a balance. Fifty-two percent of female cardholders have debt versus 44% of males, likely reflecting the gender pay gap. Additionally, 59% of cardholders earning under $40,000 annually carry a balance compared to 41% of those earning $80,000 or more.

How Credit Card Debt Impacts Consumers

Carrying credit card debt can significantly impact someone’s finances and major life decisions. For instance:

• 64% have delayed financial goals due to debt. Per Bankrate’s 2025 survey, close to two-thirds of credit card debtors have put off other financial priorities, like saving for emergencies (34%), investing (23%) and vehicle purchases (21%).

• 84% say debt affects their money choices. The large majority of indebted cardholders admit their balances impact choices like whether to take a vacation, buy a house or change jobs.

• 75% of millennials have delayed priorities. Three-quarters of millennial cardholders with debt say they’ve held off financial aims because of what they owe, especially emergency savings (38%).

• Debt causes some to postpone life events. Though less common, 5% of debtors have delayed marriage and children due to debt, Bankrate found.

Trends in Credit Card Debt

Some key trends provide insight into why credit card debt remains stubbornly high.

• Emergencies are the top source of debt. Forty-seven percent of cardholders with balances cite unexpected expenses as the primary cause, per Bankrate, including medical bills (15%), car repairs (9%) and home repairs (7%).

• Daily expenses also drive debt. Twenty-eight percent said recurring expenses like groceries, childcare and utilities are the main factor behind their credit card debt.

• Debtors underestimate payoff time. While most believe they’ll eliminate their debt in five years, just making minimum payments on the average $6,500 balance would take over 10 years at 20% interest.

• Younger generations increasingly use credit. More millennials and Gen Zers have credit cards compared to older generations, though boomers carry balances at a lower rate. Still, Gen Z’s debt grew 5% year-over-year per Bankrate.

• Interest rates are near record highs. With credit card APRs around 20% on average, according to Bankrate data, debt costs cardholders more in interest now than in over 20 years.

Tips for Paying Down Credit Card Debt

If you’re carrying high-interest credit card debt, here are some steps to pay it down faster:

• Make debt repayment a budget priority. Allocate as much monthly income to credit card bills as you can reasonably afford. Look for areas to cut back discretionary spending.

• Consider balance transfer cards. These let you move debt onto a new card with a 0% intro APR period, avoiding interest for up to 21 months. Make a payoff plan.

• Explore debt consolidation loans. A personal loan with a lower rate than your cards can help consolidate balances into one monthly payment.

• Discuss options with a nonprofit counselor. Reputable credit counseling agencies like Money Management International can offer guidance specific to your situation.

• Boost income with a raise or side gig. Increasing your earnings, even temporarily, generates more money to put toward credit card debt.

• Prioritize highest-rate balances first. Paying off cards with higher APRs faster saves the most on expensive interest charges.

The Takeaway

Around half of credit cardholders carry a balance from month to month, resulting in costly interest and causing many to delay financial aims. But setting a payoff strategy in motion can help you conquer credit card debt and achieve your money goals sooner. Monitoring spending and balances, transferring to low-rate cards, earning more income and consulting professionals can accelerate your debt repayment journey.

Approximately half of Americans with credit cards carry a balance from month to month. A recent report by CNBC found that more than half of credit card borrowers carry debt, with interest rates averaging over 20%.