How many people are in debt in America over credit card problems: Here are 3 top solutions

Credit card issues for many people word wide has become an issue for as long as I can remember. I mean feels like soon as you get out of high school you are offered a credit card without understanding that the wrong purchase or investment could impacted you in the wrong way down the line.

In the United States, a significant portion of the population carries debt, which can lead to credit problems for many individuals. Roughly three out of four American households currently have some form of debt. As of the second quarter of 2025, the total household debt in the U.S. reached a record-high $18.39 trillion. This translates to an average household debt of $152,653. 

Furthermore, a recent Bankrate survey found that nearly half of Americans (46%) are carrying credit card debt. Many cite emergency expenses and day-to-day living costs as the reasons for this debt. 

In conclusion, a substantial portion of the American population carries various forms of debt, with a significant percentage having credit scores that may make it challenging to access credit or loans under favorable terms. The impact of debt can also extend to individuals’ financial choices and overall financial well-being. 

Nearly 2 in 3 U.S. credit cardholders with debt (64 percent) say they have delayed or avoided financial decisions because of their credit card debt, according to Bankrate’s 2025 Dealing With Debt Survey.

Saving for an emergency (34 percent), investing (23 percent) and buying a vehicle (21 percent) are the most likely to be set back.

Credit card debtors also say they’ve put off helping family and/or friends (19 percent), donating to charity (17 percent), spending on wellness (17 percent, e.g., gym fees, weight management programs, meal delivery services), spending on healthcare (17 percent, e.g., medical procedures, medication) and making home purchases (13 percent).

And when it comes to major life choices, debtors have delayed continuing education and/or job-related training courses (8 percent), different and/or new employment (7 percent), having children (5 percent) and getting married (5 percent).

Missing these milestones shows that credit card debt can hold you back. “This is why it’s so important to pay off your credit card debt as quickly and cost-effectively as possible,” Rossman says.

Most credit card debtors admit that debt impacts their financial choices

Among credit card debtors, more than 4 in 5 (84 percent) say their credit card debt impacts their financial choices — such as whether to make a big purchase, take a vacation or look for a new job.

That includes 29 percent who report their choices as being significantly impacted, 31 percent moderately impacted, and 24 percent slightly impacted. Only 12 percent said their debt has no impact, and 4 percent didn’t know.

Here is the break down on the top best ideas to knock down your credit:

1.

Many new graduates don’t realize that every credit card application they complete has the potential to temporarily lower their credit score. That’s because credit issuers track how often you apply for credit — and if there are too many new credit inquiries on your credit report, your credit score will suffer.

This is especially tough for younger people who often fall within the “fair” credit score range to begin with due to their more limited credit histories. That’s where prequalification comes in handy.

Here’s how it works: The credit issuer performs a soft credit check, which doesn’t impact your credit score but gives the issuer the information it needs to determine whether you’re likely to be eligible for a particular card.

Once you’re ready to apply for your new credit card, the credit issuer will perform a hard credit check. This credit inquiry is reported to the three major credit bureaus (Equifax, Experian and TransUnion) and will be included in your next credit score assessment. But don’t worry — if you keep your new credit inquiries to a minimum, the impact on your score will be minimal and will decline over time if you don’t continue adding new inquiries.

2.

Get a copy of your credit report. Under federal law, you are entitled to one free credit report per year. Plus, you can use free or paid credit checking services to monitor your score and profile. If you don’t know your credit score, you can’t fix it. Your first step is being honest with yourself about where your finances stand and what you should do over the next 6 months.

3.

Why it matters

Your payment history makes up the largest part—35 percent—of your credit score. Even small slip-ups can lower your score by a lot. Late or missed payments stay on your credit report—and can affect your credit score—for up to seven years.

Always make at least the minimum payment by the due date. You can set up payment reminders and automatic payments within your accounts, so you never accidentally miss a due date. Just make sure you have enough money in your accounts to cover your bills.

Also, check your credit reports at least once a year and correct any inaccurate information.