How much interest will you pay on a $25,000 credit card balance each year?

You could end up paying a hefty amount in interest on a $25,000 credit card balance, especially in today's high-rate environment. Getty Images

Americans currently owe a staggering $1.2 trillion in credit card debt , with the average cardholder carrying approximately $8,000 on their credit cards. But in today's high-rate, inflationary landscape , it's not unheard of for cardholders to rely on this type of short-term borrowing to bridge the gap between their incomes and their essential costs, especially as the prices of everyday goods continue to rise. As a result, there are a lot of credit card users who owe significantly more than the average.

And, if you're one of the many carrying a significant credit card balance right now, you're likely feeling the impact on your finances.