A recent survey conducted by Debt.com has shed light on the escalating financial challenges faced by Americans in 2025, with credit card debt emerging as a critical issue. The survey, which polled 1,000 adults nationwide, reveals how credit cards have transitioned from being a convenience to a necessity for many households struggling under the weight of persistent inflation.
The findings indicate that 32% of respondents have maxed out their credit cards, while 37% rely on them regularly to cover basic living expenses. Furthermore, 44% of participants reported carrying larger monthly balances due to inflation, highlighting the ongoing economic strain. The survey also uncovered significant generational differences, with Millennials (42%) and Gen Xers (39%) more likely to max out their cards compared to Gen Z (32%) and Baby Boomers (14%). Over 63% of those surveyed carry a credit card balance, with more than 20% owing over $10,000.
In response to these findings, a bipartisan legislative effort led by Senators Alexandria Ocasio-Cortez and Anna Paulina Luna aims to cap credit card interest rates at 10%. Howard Dvorkin, CPA and Chairman of Debt.com, stressed the importance of this measure, noting that 27% of survey participants are unaware of their current Annual Percentage Rate (APR).
Despite the severity of the debt crisis, 57% of respondents have never sought professional or do-it-yourself debt relief options, such as credit counseling or debt consolidation. This gap in financial education and awareness is concerning, especially as the University of Michigan's Consumer Sentiment Index shows a decline in consumer confidence amid economic uncertainty and high borrowing costs.
The situation is particularly dire for those who have maxed out their credit cards, with 80% stating they would rely on credit cards in a financial emergency and 23% owing more than $20,000. These statistics underscore the urgent need for effective financial strategies and support systems to address the growing debt crisis. For more information on managing credit card debt, visit https://www.debt.com.
