About half of all Americans have credit card debt, and the amount they owe continues to grow each year. However, roughly the same number don’t carry a credit card balance, so a new survey by Clever Real Estate set out to uncover the behaviors and habits that either drive people into debt or help them avoid it.
Long-term credit card debt can have a dramatic impact. For instance, 44% of survey respondents say their debt has prevented them from living the life they want. That could mean taking a vacation, saving for retirement, or making nonessential purchases.
“It can have both a literal financial impact and a psychological impact on a person’s life,” said Bobbi Rebell, CFP® and credit card expert at CardRates.com. “This is psychologically demoralizing and depressing, not to mention frustrating. It can feel like you can’t and won’t ever get out from under.”
Whether it’s to reap the rewards or build their credit scores, Americans continue to charge purchases big and small. While not all credit card debt is bad, experts agree that there are right—and wrong—ways to use plastic.
The Overall Credit Card Debt Situation
In the third quarter of 2025, credit card balances in the U.S. hit $1.23 trillion. Clever’s survey found that the average debt was $7,719, with 32% owing $10,000 or more and 9% owing over $20,000. Even more troubling, 27% said they go deeper into debt every month.
“Without zeroing down the balance, interest just keeps occurring in a never-ending and costly way,” Rebell said.
Nearly half of all Americans think they’ll be able to pay off their debt within a year, while just 15% say it will take them five years or more. About a third say making the minimum payment each month is difficult.
While paying the minimum amount is better than not making a payment at all, it’s akin to treading water. The repayment period stretches as interest charges grow, so you pay more over time. For instance, say you owe $12,000 on a credit card with an interest rate of 20%. If you make the minimum payment of 2% of the balance due, it will take more than 30 years to pay off the balance, and you’ll end up paying more than $54,000 total.
“I’ve seen people treat the minimum payment like a subscription fee for their past,” said Ethan Aiem, CEO of Klendify, a financing brokerage. “The danger isn’t just the interest; it’s that quiet mental shift where debt becomes background noise. Suddenly, you’re paying today for groceries you ate last spring.”
Typical Behaviors of Someone with Credit Card Debt
Clever’s survey revealed several habits typical of someone carrying a credit card balance. For instance, 52% of those with debt make impulsive purchases on their cards every few months, and 29% do so monthly. Half of debtors tend to spend more when using credit cards, and 54% say they spend more than they earn.
About 70% of those surveyed have multiple cards, and they’re more likely to carry a balance than those with just one card. Credit card debt also tends to extend to other areas — debtors are three times more likely to have personal loan debt and medical debt.
Those with credit card debt are more likely to have paid one card’s bill with another, just as they’re more likely to use their cards for unavoidable expenses like mortgage payments. About 36% of those struggling to afford their houses are relying more on the cards.
Psychology plays a part, too. About a third of survey respondents say they spend more on their credit cards when they’re happy; 24% do so when they’re sad. Experts say this is because debt isn’t always about money — it’s often about emotion.
“People use credit to buy relief, comfort, or control,” Aiem said. “The best strategy isn’t just financial, it’s psychological. Once you understand why you spend, fixing how you spend becomes easy.”
This understanding could be critical to avoiding debt. About 44% of those with a balance say they’ve regretted a large purchase that they’ve paid for with a credit card.
Rewarding Bad Behavior? Credit Card Rewards and Benefits
One thing that seems to be driving credit card use is rewards. About a third of Americans have applied for cards solely for the sign-up bonuses and other benefits. However, experts say rewards can be both positive and negative — it’s all in how you use them.
“It can be an added benefit to using credit cards for transactions,” said Ashley Morgan, an attorney and owner of Ashley F. Morgan Law, PC. “But those benefits are often outweighed when you carry a balance.”
More than half of those surveyed say cash back is their top credit card reward, followed by travel rewards. While this can feel like free money, it ultimately depends on your card balance. Morgan said that in the best-case scenario, you’re probably not getting more than 10% back. So, carrying a balance with an interest rate of 15-20% or higher outweighs any benefit.
Most people look for cards with a low or no annual fee, a low interest rate, or high rewards, and 36% of users cash those rewards in every month. However, most Americans believe bonuses and benefits encourage people to spend more than they should.
To counter this, about 70% would support laws that lower and cap credit card interest rates, even if it leads issuers to reduce or eliminate rewards. They’ll simply change their spending behavior as a result, by cancelling some cards, using them less, or switching to cards with lower interest rates or annual fees.
The Flip Side: How People Avoid Credit Card Debt
Incredibly, about 37% of those surveyed say they’ve never been in long-term credit card debt. To achieve this, they’ve developed healthy financial habits, such as not spending more than their bank account balance allows, monitoring their card balances throughout the month, and paying off credit card purchases promptly.
Experts say this is the ideal way to use a credit card: treat it like a debit card with perks. Take the rewards, but don’t let them influence your spending.
“In the best situations, you have someone who uses the credit card and pays it in full each month,” Morgan said. “There is never an unpaid statement balance, and you are never carrying a balance month to month.”
Even those with no current debt carry a balance from time to time, which experts say is fine — as long as you have a plan for paying it off. For instance, using automatic payments to set your pay-off timeline can help you stay debt-free. What matters most is being intentional with how you use the credit card, if possible. Plan purchases in advance and avoid charging anything that can’t be paid off by the time the bill is due.
Also, make sure you understand how credit card debt affects your broader financial health — namely, lowering your credit score. This can mean higher interest rates in other areas and make it difficult to qualify for loans to help you buy a house or a car.
When it comes to getting out of credit card debt, focus on one card at a time — preferably, the one with the highest interest rate, although you can also tackle the one with the lowest balance. Make higher payments on that card until the balance is gone, then roll that payment into the next card.
“Momentum is addictive,” Aiem said. “Once you see one balance his zero, you’ll never want to see a high one again.”