CBS NEWS

By Matt Richardson

Household debt hit a new record high in the third quarter of 2025, according to a report released earlier this month. The cumulative household debt in the country grew to $18.59 trillion, increasing by $197 billion from the previous quarter. And while that was largely driven by mortgage debt, credit card debt also contributed to this troubling statistic.

Specifically, credit card balances grew to $1.23 trillion in the third quarter of the year. That’s nearly 6% higher than it was one year ago, marking a $24 billion increase in the third quarter alone. Combined with credit card interest rates sitting at 21%, just under a record high, it’s easy to see why credit card debt is a major and growing problem for millions of American borrowers right now.

The key, the

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