Is your credit card bill higher than the US average? Find out if you’re spending more

If your credit card bill keeps rising month after month, you’re not alone. Many Americans have seen their assets grow amid inflation and rising costs of living. Additionally, it can be difficult to keep track of your actual spending and how much interest you’re paying. Below, we explore how much credit card debt the average American has, as well as ways to pay off your debt.

How your credit card bill compares to the national average

The average credit card balance in the U.S. was $6,618, a 1.2% increase from the beginning of 2024 balance of $6,541. Total credit card debt for all U.S. cardholders reached $1.21 trillion in the spring, an increase of $27 billion from the beginning of the year, and an increase of $67 billion from the previous year.

In short, balances are rising overall and for every borrower. If your balance is between $6,500 and $7,000, you’re close to the national average.

While this number may reflect the national standard, there is still a significant amount of debt to take on, especially when credit card interest rates are high, often around 20% or higher.

If you have a 20% annual percentage rate (APR) with a balance of $6,500, you’ll owe about $108 in interest each month, or $1,300 per year, if your balance stays about the same. Minimum payments usually barely cover the interest, allowing balances to grow.

Averages also mask differences between households. A $6,500 balance is manageable for some but a burden for others. Since the data does not cover income or credit limits, use it as a guide, not a target.

How to control your credit card spending

If your credit is higher than the national average or simply higher than you’d like, there are steps you can take to better manage your debt load and spending. Paying your balance in full is ideal because you avoid the high interest fees that come with credit cards and prevent balances from growing.

It also ensures that you are living within your means. However, not everyone can do this. For some families, maintaining a balance isn’t a matter of overspending, it’s a necessity. However, it is worth remembering that his goal is not perfection, but progress.

Paying a little more than the minimum, avoiding new debt, and staying consistent with payments can help you get ahead.

Here’s how to get started:

• Evaluate your credit utilization: Your credit utilization ratio is the amount of credit limit you are using. Experts recommend keeping it under 30%, but this is a benchmark and not a measure of affordability. A higher credit limit may make 30% seem like too much, while a smaller limit may require you to use more out of necessity. A better measure is whether you can pay off your balance within a month or two without skipping basics or using savings.
• Review your data: Review your data and highlight expenses you barely remember: Ubers, digital subscriptions, and impulse purchases. These small purchases often explain why your balance barely moves.

• Focus on the smallest debt (snowball method) or the debt with the highest interest rate (avalanche method). If you have multiple cards, direct the extra money toward the smaller card or the card with the highest interest rate, depending on whether you choose the snowball method or the avalanche method. Even small additional payments can save you hundreds of dollars in interest over time.
• Pay often: Instead of making one large monthly payment, try paying weekly or every two weeks. This keeps your balance low throughout the month, which means you’ll be charged less interest and will remain more conscious of spending.
• Use new credit strategically: If you qualify, a 0% balance transfer card or a lower negotiated rate can help, but only if you stop adding new fees and pay down debt aggressively during the interest-free period.
• Track your wins: Debt reduction takes time. Instead of just tracking your entire balance, note how much money you’ve saved by avoiding interest. Small victories build confidence and motivation to keep going.