The increase in the use of credit cards is raising alarms among financial specialists. With record debt levels and high interest rates, more and more people face difficulties in keeping their finances under preserve watch over.
A problem that continues to grow
At the end of the fourth quarter of 2025, Americans had approximately $1.23 trillion in credit card debt, a record figure that increased by tens of billions from the previous quarter.
On average, each user maintains about $6,600 in debt, an amount that may seem manageable, but is complicated by interest rates exceeding 21%, causing even small balances to grow rapidly.
The key point: do not exceed 30% of the available credit
Experts agree that there is no single figure that determines when debt is excessive, but there is an important reference: the use of available credit.
Certified financial planner Bobbi Rebell recommends: “You should stay below about 30% of your available credit”.
Exceeding that level not only affects your credit history, but can also make it difficult to pay basic expenses.
According to data from the credit agency Experian, exceeding that threshold generates a more considerable negative impact on the credit rating.
Rebell also warned about the economic context right: “This is a very difficult environment for card debt, with balances at record levels and interest rates near all-time highs.”
Warning signs in your finances
Beyond the percentages, specialists point out that there are clear indicators that debt is becoming a problem.
Financial advisor Alex Duffy explained: “Any amount that relieves stress, eats up too much of your income or doesn’t allow you to save for the future is too much.”
Among the most common signs are:
–Difficulty covering basic expenses
–Pay only the minimum each month
–Frequent use of cash advances
–Delays or non-compliance in payments
–Spending beyond the credit limit
In these cases, debt growth can accelerate. Rebell sums it up like this: “Your balance will grow while your ability to pay decreases. Things can go out of control.”
For her part, Kim Chambers pointed out: “Card debt can be considered too much when it stops being a useful tool and becomes a burden that is difficult to manage.”
What to do if the debt starts to grow
Experts recommend acting immediately if debt starts to become unmanageable.
Duffy suggests: “The first thing is stop spending and stop opening new lines of credit. Next, you need a plan to pay off the debt as quickly as possible.”
Among the most recommended strategies are:
–Prioritize the payment of small balances or with higher interest
–Negotiate a lower rate with the financial institution
–Transfer balances to cards with lower promotional rates
–Consolidate debts into a single loan with lower interest
Chambers advises preparing before negotiating: “The first step is to research other interest rates with your institution and in the market. Having that information will help you when negotiating.”
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