How Does Your Credit Card Bill Compare to the US Average? See If You’re Paying More

If your credit card bill keeps rising month after month, you’re not alone. Many Americans have seen their balances grow amid inflation and rising living costs. Plus, it can be difficult to keep track of your actual spending and how much interest you’re paying. Below, we explore how much credit card debt the average American has, plus ways to pay down your debt.

How Your Credit Card Bill Compares to the National Average

The average credit card balance in the United States was $6,618, a 1.2% increase from the the start of 2024 balance of $6,541. Total credit card debt for all U.S. cardholders was $1.21 trillion in the spring, a $27 billion increase from the start of the year, and a $67 billion increase from the previous year.

In short, balances are rising both overall and per borrower. If your balance is in the $6,500 to $7,000 range, then you’re close to the national average.

While this number might reflect the national norm, it’s still a significant amount of debt to carry, especially when credit card interest rates are high, often around 20% or even higher.

If you had a 20% annual percentage rate (APR) with a $6,500 balance, you’d owe about $108 in interest each month, or $1,300 a year, if your balance stays roughly the same. Minimum payments typically barely cover interest, allowing balances to grow.

Averages also hide differences between households. A $6,500 balance is manageable for some but a burden for others. Since the data doesn’t cover income or credit limits, use it as a guide, not a target.

How To Take Control of Your Credit Card Spending

If your balance is higher than the national average or simply higher than you’d like, there are steps you can take to better manage your debt load and spending. Paying your balance in full is ideal because you avoid the high interest charges that credit cards come with and prevent balances from growing.

It also ensures you’re living within your means. Not everyone can do that, though. For some households, carrying a balance isn’t a matter of overspending—it’s a necessity. Still, it’s worth remembering that he goal isn’t perfection—it’s progress.

Paying a little bit more than the minimum, avoiding new debt, and staying consistent with payments can help you progress.

Here’s how to start:

• Evaluate your credit utilization: Your credit utilization ratio is the amount of your credit limit that you’re using. Experts recommend keeping it under 30%, but that’s a benchmark, not a measure of affordability. A high credit limit can make 30% still feel like too much, while a smaller limit might require using more out of necessity. A better measure is whether you could pay off your balance in a month or two without skipping essentials or using savings.
• Review your statements: Go through your statements and highlight expenditures you barely remember making: Ubers, digital subscriptions, and impulse buys. These small purchases often explain why your balance barely moves.

• Focus on the either the smallest debt (snowball method) or the debt with the highest interest rate (avalanche method). If you have multiple cards, direct extra money toward the smallest one or the one with the highest interest rate, depending on whether you choose the snowball method or the avalanche method. Even small additional payments can save you hundreds of dollars in interest over time.
• Pay more often: Rather than paying one large monthly payment, try paying weekly or biweekly. This keeps your balance lower throughout the month, which means you’re charged less interest and remain more conscious of spending.
• Use new credit strategically: If you qualify, a 0% balance transfer card or a negotiated lower rate can help, but only if you stop adding new charges and pay debt down aggressively during the interest-free window.
• Track your wins: Debt reduction takes time. Instead of just tracking your entire balance, note how much money you’ve saved by avoiding interest. Small wins build confidence and motivation to continue.