Americans Are Accumulating Credit Card Debt at Record Rates

Written By Melissa Cook
Jun 3, 2022
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Americans have been swiping their credit cards more in the last few months. 

During the pandemic, many relied heavily on credit cards, leading to near-record consumer debt levels.

The Federal Reserve reports that as of March 2022, consumer debt is up to over $52 billion.

Credit card debt surged by over 21 percent as card companies have increased interest rates and fees.

Growth of the Credit Card Payment Market

Credit Card Payment is a convenient payment method that allows customers to pay for purchases with a plastic card instead of cash or checks. 

With a credit card, you can pay for goods and services without having to immediately provide your bank account details. By borrowing funds to pay back to the credit card company later, you avoid the hassle of carrying wads of cash and waiting for days before receiving your funds.

The Global Credit Card Payment Market has witnessed tremendous growth over the last few years due to the growing adoption of online transactions across many industries.

The market was valued at $477.5 billion in 2021 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.4 percent to reach a value of $732.8 Billion by 2028.  

Compound Annual Growth Rate (CAGR)

While the booming market is helping drive record banking industry profits, it could become increasingly costly for consumers. This is especially true for cardholders with lower credit scores.

Key Credit Card Statistics

Rising Interest Rates

According to, the average interest rate is 16.58 percent, near a record high. 

The Federal Reserve recently began fighting inflation by pushing up the federal funds rate by a historic half of a percentage point. This caused the national average credit card APR to soar to a rounding distance of 17 percent – its highest point in more than 2 years.

Federal Reserve policymakers pointed out that their decision was justified due to declining unemployment, robust job growth, and historic inflation, which has so far proved tough to tamp down. Their goal is to help push inflation closer to 2 percent. Inflation currently stands at 8.5 percent – the highest it’s been in 4 decades.

Several banks, including Wells Fargo, American Express, Citibank, Huntington, U.S. Bank, and Key Bank, responded to the Fed hike with half-point increases of their own. 

Interest rates are poised to climb even higher as more card companies catch up to the Fed hike and revise their APRs.

Tips to Get a Low Credit Card Interest Rate

Improving your credit score will increase your chances of getting approved for a credit card lowest rate.

To secure a low APR:

  • Pay your bills on time
  • Build a lengthy and diverse credit history
  • Keep your credit utilization ratio low
  • Monitor your credit report for errors
  • Negotiate a lower APR
  • Avoid credit card overspending

Help is a Phone Call Away

Credit card debt remains a big problem for many Americans. Debt repayment is a very important part of rebuilding your financial life. If you’re experiencing trouble paying down debt, we offer debt relief solutions

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

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