Record 11% of Americans Making Minimum Credit Card Payments as Debt Surpasses $1.21 Trillion

Americans' reliance on credit cards has reached new heights, with national credit card debt climbing to $1.21 trillion by the end of 2024. Recent Federal Reserve data show that over 11% of Americans with accounts at major banks are now making only minimum payments on their credit card bills—a record high since tracking began in 2012. Financial experts warn that this trend is a troubling indicator of rising consumer stress, especially as inflation and tariffs further strain budgets. Surveys reveal that many Americans mistakenly view minimum payments as an effective debt management strategy, despite the risk of accumulating long-term debt. The increase in minimum payments and delinquency rates coincides with warnings from business leaders about weakening consumer spending and a potential recession if current economic policies persist. The ongoing shift away from cash toward credit card use has made the industry highly profitable but has also contributed to mounting financial pressure on households.