WEST PALM BEACH, Fla. — Credit card debt and interest rates aren't getting any better, according to the latest study by WalletHub.
WalletHub's new "Credit Card Debt Study" found consumers added roughly $29 billion in credit card debt during the second quarter of this year. Experts say the ballooning debt is about 3% larger than the increase from the same time period in 2025.
The WalletHub report also calculated the new cost of household debt, putting the average credit card balance around $11,313 at the end of the second quarter for 2025. That amount is $2,139 below the record high.
For homeowners wondering how the Federal Reserve's recent rate hike of a quarter percentage will impact their mortgage, WalletHub anticipates the average 30-year mortgage will be $9,720 more expensive over the life of the loan.
WalletHub has these 5 tips to tackle credit card debt
- Separating everyday expenses from your debt. When you carry a credit card balance from billing period to billing period, you lose your grace period for new purchases. That means interest starts applying to new purchases right away. But if you use one card for ongoing debt and another for everyday purchases that you can pay off by the due date, the everyday purchases should never accrue interest charges.
- Use a balance transfer deal to lower the cost of existing debt. The best balance transfer credit cards can give you a break from interest charges for as long as 21 months, and attractive offers are accessible to individuals with fair credit or better. A prolonged 0% introductory period can yield significant savings on interest, helping you get out of debt faster.
- Improve your budgeting and saving efforts. There are several good budgeting apps available to consumers for free or at a low cost. For example, WalletHub’s free budgeting tools can help you get organized, set up your budget, and analyze your performance. Taking ownership of your budget can help you free up some room for emergency fund contributions and debt payments so you can get out of debt and stay there.
- Use a rewards card for everyday spending. You can save 1% to 2%+ on every purchase with the right rewards card. You might also save a couple hundred dollars with an initial bonus. And if you plan to pay the bill in full monthly, the interest rate won’t matter.
- Work to improve your credit score. People with higher credit scores tend to pay lower interest rates. For example, the average APR among credit cards for people with fair credit is 27.01%, while the average for people with excellent credit is 17.09%, according to WalletHub’s database of 1,500+ credit card offers. Having good or excellent credit also makes it easier to get credit cards with a 0% introductory APR.
Click here to view the full "Credit Card Debt Study"
