What's the average credit card debt now (and how can you pay it off)?

As economic hardships continue, warning signs are flashing red for borrowers' finances nationwide. According to a new report from VantageScore, borrowers appear to be leaning harder than ever on their credit cards, with balances climbing month over month and year over year as persistent cost-of-living pressures squeeze budgets. This uptick in credit card usage is hardly limited to routine spending increases. It stems, in large part, from a fundamental shift in how people are covering their basic expenses when their paychecks fall short.

What makes the current trend particularly concerning, however, is that credit utilization rates have surged to over 30%, a level that's considered dangerously high. This metric tells a story that goes beyond simple convenience spending; it suggests Americans are pushing their available credit to uncomfortable limits just to stay afloat. When borrowers consistently max out their credit capacity, it tends to signal that emergency borrowing has become routine borrowing, a pattern that can quickly snowball into unmanageable debt cycles.

Just how much credit card debt does the average borrower have right now, though, following this uptick in balances? And, how can these borrowers best tackle what they owe? That's what we'll examine below.

Learn how you could pay less for your credit card debt here.

What's the average credit card debt now (and how can you pay it off)?

According to VantageScore's data, the average credit card balance climbed to an average of $6,500 in August 2025, representing a $96 increase from the same period last year and a $67 jump from just the previous month. That, coupled with the uptick in credit utilization, is a clear signal that borrowers are stretching their credit usage to dangerous limits. 

Not only do credit card APRs exceed 21% right now, on average, but the interest charges on credit cards compound daily, making it increasingly difficult to pay down your balance, especially if you're just making the minimum payments. Fortunately, there are several proven strategies to help you tackle your credit card debt systematically and escape this financial burden. Here are a few to consider right now:

Reduce interest charges via debt consolidation

A debt consolidation loan allows you to combine multiple credit card balances into a single fixed-rate loan, typically at a lower interest rate than your current cards. This approach transforms variable-rate revolving debt into predictable monthly payments, often saving hundreds or thousands of dollars in interest charges over time. The key, though, is to secure a loan with an APR that's significantly lower than your current credit card rates.

Find out more about the debt relief options available to you now.

Wipe out interest completely with a balance transfer

If you have good credit, a 0% APR balance transfer card can provide breathing room to pay down your principal without accumulating additional interest charges. These promotional periods typically last up to 21 months, during which every penny of the payments you make goes directly toward reducing your balance rather than covering interest charges. Just be mindful of balance transfer fees and ensure you can pay off the debt before the promotional rate expires.

Settle it for less if you're behind on payments

For those facing severe financial hardship and already falling behind on payments, debt settlement, also referred to as credit card debt forgiveness, may offer a path forward. While you can take a do-it-yourself approach, many borrowers work with debt relief companies to negotiate with their creditors. The end goal is to get your creditors to accept lump-sum payments for less than the full amount owed. But while this approach can significantly reduce your total debt burden, often by 30% to 50% or more, it also comes with serious consequences, including credit score damage and potential tax implications on forgiven debt amounts.

Get professional guidance and reduce costs with credit counseling

Working with a credit counseling agency to establish a debt management plan can help you consolidate your monthly payments and potentially secure reduced interest rates and fees from your creditors. These structured programs typically span three to five years and require you to close your credit card accounts, but they can provide a clear roadmap to becoming debt-free while avoiding the credit damage associated with settlement. And, the professional guidance you get along the way can be invaluable.

The bottom line

The latest data showing credit card balances at $6,500 with rising utilization rates reflects a broader struggle many Americans face in today's economic environment. While carrying this level of debt can feel overwhelming, especially with current high interest rates, taking action now is crucial before balances become truly unmanageable. 

Whether you choose debt consolidation, debt settlement or a self-directed payoff strategy, though, the most important step is starting immediately. The longer high-rate credit card debt remains unpaid, the more it compounds, making your financial recovery that much more difficult. By implementing one of these proven strategies and maintaining consistent payments, you can break free from the cycle of revolving debt and regain control of your financial future.