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. A November 202024 Bankrate survey found that almost half of credit cardholders say they have a balance from month to month. This is up from 33.9 percent in December 202021, which suggests that 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. According to a poll by Bankrate, almost three quarters of people who have credit card debt think they can pay it off in five years or less. However, 6% of people feel like they’ll never get out of credit card debt.

• More than half have had a balance for more than a year. A study by Bankrate found that among credit card debtors, 553 have been in debt for at least 12 months. Approximately 22% of the wealthiest households said they had been in debt for five years or more.

• Women and people with lower incomes are more likely to have a balance on their card. 52 percent of female cardholders have debt, compared to 44 percent of male cardholders. This is likely due to the difference in pay between men and women. Also, 2059 percent of cardholders who make less than $40,000 a year have a balance, compared to 2041 percent of cardholders who make $80,000 or more a year.

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.