A recent survey conducted by Debt.com has shed light on the escalating financial challenges faced by Americans in 2025, with credit card debt emerging as a critical issue amidst persistent inflation. The survey, which polled 1,000 adults nationwide, reveals a troubling shift in credit card usage from a convenience tool to a survival mechanism for many households.
Key findings from the survey indicate that 32% of respondents have maxed out their credit cards, while 37% rely on them to meet basic living expenses. Inflation has forced 44% of participants to carry larger monthly balances, highlighting the ongoing economic strain. The survey also uncovered stark generational disparities, with Millennials (42%) and Gen Xers (39%) maxing out their cards at higher rates compared to Gen Z (32%) and Baby Boomers (14%). Over 63% of respondents carry a credit card balance, with more than 20% owing over $10,000.
The timing of the survey coincides with a bipartisan legislative proposal by Senators Alexandria Ocasio-Cortez and Anna Paulina Luna to cap credit card interest rates at 10%. Howard Dvorkin, CPA and Chairman of Debt.com, underscored the importance of this potential intervention, noting that 27% of survey participants are unaware of their current Annual Percentage Rate (APR).
Despite the severity of the debt crisis, 57% of respondents have never sought professional or do-it-yourself debt relief options, such as credit counseling or debt consolidation. This gap in financial education and awareness is alarming, especially as the University of Michigan's Consumer Sentiment Index reflects declining consumer confidence due to economic uncertainty, inflation, and high borrowing costs.
The survey also highlights the precarious situation of those maxed out on credit cards, with 80% stating they would rely on credit cards in a financial emergency and 23% owing more than $20,000. These findings underscore the urgent need for comprehensive financial strategies and support systems to address the growing debt crisis.
