The True Cost of Credit Card Debt
The average American carries about $6,500 in credit card debt. At a typical APR of 22%, paying only the minimum payment of ~$130/month would take over 8 years and cost more than $5,000 in interest alone — essentially doubling the original debt.
Strategies to Pay Off Faster
- Avalanche method: Pay minimums on all cards, put extra money toward the highest-APR card first. Saves the most in interest.
- Snowball method: Pay minimums on all cards, put extra toward the smallest balance. Builds psychological momentum.
- Balance transfer: Move high-APR debt to a 0% intro APR card (watch for balance transfer fees of 3–5%).
- Personal loan consolidation: Consolidate at a lower rate (often 8–15% vs. 22%+ credit card rates).
Average Credit Card APR in 2025
The average credit card APR in the US hit a record high in 2025, exceeding 22% for new offers. Store credit cards often charge 28–30%. If you carry a balance, your APR is one of the most important numbers to know.