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Americans Carry $1.21 Trillion in Credit Card Debt, with 73% Tied to Essentials and Median Interest Rates at 25.3%
Americans now carry a record $1.21 trillion in credit card debt – with 73% tied to essential living costs – as median interest rates reach 25.3%. In new research released today, Academy Bank reveals how persistent financial pressures are pushing households to rely more heavily on credit cards for everyday expenses, with the average user carrying a $5,595 balance. The bank's latest white paper, "Managing High-Interest Debt: How Cash-Out Refinances Can Help Homeowners Find Relief," analyzes nation
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[{"type":"text","content":"Gen X consistently holds the highest balances, as every generation – from Gen Z to Baby Boomers – incurs increases over the past three years","length":140,"tagName":"p","attribs":{}},{"type":"text","content":"New research explores how cash-out refinances can provide qualified homeowners a lower-interest-rate option to tackle debt and improve financial stability","length":159,"tagName":"p","attribs":{}},{"type":"text","content":"KANSAS CITY, Mo., Jan. 12, 2026 /PRNewswire/ -- Americans now carry a record $1.21 trillion in credit card debt – with 73% tied to essential living costs – as median interest rates reach 25.3%. In new research released today, Academy Bank reveals how persistent financial pressures are pushing households to rely more heavily on credit cards for everyday expenses, with the average user carrying a $5,595 balance. The bank's latest white paper, "Managing High-Interest Debt: How Cash-Out Refinances Can Help Homeowners Find Relief," analyzes national debt trends and examines how cash-out refinances may offer qualified homeowners lower rate loans to reduce high-interest balances.","length":700,"tagName":"p"},{"type":"text","content":"Academy Bank compiled data from the Federal Reserve, Experian, Bankrate, NerdWallet, Freddie Mac and other trusted industry sources. The bank's new research examines consumer credit card usage, the drivers of high-interest debt, and the obstacles many households face in paying down balances. It also explores how cash-out refinances, when used responsibly, may help qualified homeowners consolidate high-interest debt at lower rates.","length":438,"tagName":"p"},{"type":"text","content":"Rising Credit Card Usage Amid Financial StrainAccording to the white paper, credit card usage remains nearly universal, with 81% of American adults holding at least one card in 2024. The typical adult owns 7.1 credit cards and actively uses 3.7, underscoring how credit plays a central role in household financial management.","length":326,"tagName":"p"},{"type":"text","content":"Credit card debt remains elevated nationwide, with more than one-third (35%) of users with revolving debt expecting to carry balances indefinitely. Barriers to repayment – including record balances, limited savings, essential expenses, and mounting interest charges – mean that 14% of cardholders canno...