U.S. credit card debt is projected to surge sharply in 2025, with consumers expected to add about $90 billion in new balances, according to projections released ahead of updated federal data.
The estimate comes from the financial analysis platform WalletHub, which analyzed trends in consumer borrowing ahead of the Federal Reserve’s latest credit data release scheduled for Friday afternoon. If the projection holds, the increase would be about 83 percent larger than the rise recorded in 2024.
The surge suggests that household finances may be tightening again after several years of volatile spending patterns following the pandemic.
WalletHub projects that total credit card debt will reach roughly $1.39 trillion by the end of 2025 on an inflation-adjusted basis. While this represents a significant increase from previous years, it would still remain about 9 percent below the historical peak recorded in the United States.
Despite the rising totals, average household balances are expected to remain somewhat below record levels. The average household credit card balance is projected to reach about $11,542, adjusted for inflation, by the end of the year. That figure remains $1,561 lower than the highest level previously recorded.
A large portion of the projected increase appears to be linked to the final months of the year, when consumer spending typically rises.
According to WalletHub’s analysis, consumers added approximately $77 billion in credit card debt during the fourth quarter of 2025 alone, driven in part by holiday spending and rising everyday costs.
Financial experts say the latest figures highlight the ongoing challenge many households face as borrowing costs rise and living costs remain elevated.
“Credit card debt is surging back in a big way,” said John Kiernan, editor at WalletHub. “Consumers managed to keep things together for much of 2025, but the expensive holiday season seemed to have doomed us.”
Kiernan said that despite the increase, households still have options to reduce debt if they act quickly.
“Anyone can make a dent in their debt with some good old-fashioned budgeting, and if you have good credit, you could qualify for a balance transfer credit card offering 0 percent interest for up to 24 months,” he said. “But don’t procrastinate. If the economy takes a turn for the worse, things will get a lot harder.”
Many balance transfer credit cards currently offer introductory 0 percent annual percentage rates for up to 24 months, along with no annual fees and relatively low transfer fees. These options can allow borrowers to move existing balances and pay them down without accruing additional interest during the promotional period.
The Federal Reserve’s official data release will provide updated figures on consumer borrowing levels nationwide. Analysts will be watching closely to see whether credit card balances match WalletHub’s projections and how household debt trends evolve heading into 2026.
