Forty-two percent of Americans now believe they will carry credit card debt for the rest of their lives.
Gloomy outlook aside, that is a reflection of how hard it is to escape balances when rates hover near 24% and budgets are already tight. For borrowers in that position, more are starting to look at ways to replace high‑rate card debt with a lower‑rate personal loan they can actually pay down instead of carrying it indefinitely.
According to a survey issued by WalletHub, total credit card balances in the U.S. are now over $1.3 trillion, and the average person carries roughly $11,000 in card debt. More than 1 in 5 Americans say they are “very stressed” about that debt, and a majority say it feels less like a temporary setback and more like a long‑term burden.
Many also feel the system does not give them many good options, especially when minimum payments barely move the needle.
The engine behind that feeling is the annual percentage rate, or APR. A 24% APR is close to the current average credit card rate, which works out to about 2% interest per month. On an $10,990 balance, that’s roughly $220 in interest in the first month alone.
If you only make the minimum payment, which many issuers set around 2% to 3% of the balance, most of that initial payment goes to interest, not principal. Pay $250, and about $220 covers interest while only $30 reduces what you owe. With that pattern, it can take decades to become debt‑free, and any new charges push the finish line further away.
To see how the math plays out, consider …
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