Low-income households aren’t the only ones struggling to pay off credit card debt. Middle-class Americans are increasingly under pressure, even though inflation has cooled from its pandemic highs.
Data from the nonprofit American Consumer Credit Counseling (ACCC) found that 43% of Americans struggling with credit card debt have a four-year university or master’s degree, reports The Telegraph. And that’s up from 34% in 2021 (1).
“Inflation has slowed, but what people don’t realize is that consumers have been financing inflation all along,” Kenneth Mohammed, director of counseling with ACCC, told The Telegraph. “They have been using credit card debt to survive. Then you reach a point where you’re over-indebted and cannot borrow any further” (1).
One 38-year-old Reddit user, who has $17,000 in debt across three credit cards and can only afford to make minimum payments each month, wonders: “Is there any hope? Am I doomed forever?” (2).
Overall, American household debt — which, aside from credit card debt, includes mortgages, car loans and student loans — is at a record high, according to the latest data from the Federal Reserve Bank of New York. Credit card balances now stand at a whopping $1.23 trillion as of Q3 2025 data (3).
But there’s sometimes an assumption that credit card debt is primarily a problem for people with lower incomes and education levels. The findings from ACCC’s research and others indicate this isn’t the case (1).
Brookings research found that one-third of middle-class families are struggling to afford basic necessities such as food, housing and child care (4).
While President Donald Trump has called the issue of affordability a “hoax” and a “con job” on the part of Democrats, ACCC says the high cost of living left over by the pandemic is forcing Americans across the spectrum to reach for their credit cards to make ends meet.
The inflation rate dropped to 2.7% in November (though the data may be distorted by the 43-day federal government shutdown) (5).
Despite this, “prices are up 25% over the past 5 years,” writes Quentin Fottrell of MarketWatch, adding that “a slowdown in wage growth will create silent pain in 2026.” He predicts that consumers will continue to “spend and rack up record credit-card debt” (6).
A majority of U.S. workers (85%) carry some form of personal debt, with nearly six in 10 (58%) carrying credit card debt, according to Bank of America’s 2025 Workplace Benefits Report. “With consumer debt skyrocketing, employees are struggling to juggle saving for a potential future emergency with paying their current debts today” (7).
Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here’s the number that counts (and how to make it skyrocket)
If you’re swamped with credit card debt, you’re not “doomed forever.” And you’re not alone: About a quarter of Americans (24%) regret the debt they’ve racked up with credit cards, according to Debt.com, with 11% owing $30,000 to $50,000 and 22% owing $15,001 and $30,000 (8).
Higher credit card debt is increasingly linked to carrying more credit cards, according to Debt.com’s Financial Regret Survey, with one in four regretful credit card users carrying four to five credit cards (8). So, if you have multiple credit cards, you may want to consider either the avalanche or snowball debt repayment method.
With the avalanche method, you pay the most money toward the credit card with the highest interest rate while making minimum payments on the others. Once that’s paid off, you move to the next card with the highest rate, and so on.
With the snowball method, you start paying off the credit card with the smallest balance (regardless of the rate), which for some people may be more motivating. Once that balance is paid off, you move on to the next smallest debt, and so on. You can cut up those extra cards once they’re paid off.
It’s also worth considering doing a balance transfer to a different credit card with a lower interest rate. This can help your debt accumulate less while you pay it off. But ensure that you fully understand the terms and conditions, as well as any hidden fees. And if you’ll be tempted to spend more on either card once you’ve transferred the debt, then this may not be a good idea for you.
You could also consider a debt consolidation loan (which combines multiple debts in a single new loan with one monthly payment). But debt consolidation comes with a caveat: Your debt doesn’t go away, and even if you get a low interest rate, it may not stay low. And you may end up paying more in the long run. For this to work, you’ll need to practice good money habits, such as spending less than you make.
If this all seems too overwhelming, you may want to consider seeking help from a credit counseling service to help you create a debt management plan. Many non-profit credit counselors offer their services free of change. You could also try contacting your creditors to negotiate a lower monthly payment and interest rate.
If you can’t make it work — like the Reddit user who is trapped in a cycle of making minimum payments and then not having enough to live on — you may need to look for ways to cut back on spending where possible and/or increase your income.
To reduce your spending, that can range from simple (cutting back on takeout) to more drastic measures (moving to a cheaper apartment, getting a roommate to split the costs or getting rid of a second car). To increase your income, you could consider asking for a raise, taking on a side hustle or even selling possessions online that you don’t want anymore.
As a last resort, you could file for bankruptcy, but this will do serious damage to your credit score and make it harder to access credit in the future — hence, why it should only be considered as a last resort.
Credit card debt may be hitting record highs — and increasingly ensnaring middle-class, well-educated Americans — but feeling overwhelmed doesn’t mean you’re out of options. Whether it’s changing how you repay, restructuring your balances or getting outside help, even heavy debt can be tackled step by step, and the most important move is starting before it costs you even more.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Telegraph (1); Reddit (2); Federal Reserve Bank of New York (3); Brookings (4); Reuters (5); Morningstar (6); Bank of America (7); Debt.com (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
