A significant number of credit card users are struggling with debt and it could take an extended period to clear it off.

• A recent study shows that approximately 48% of credit cardholders continue to carry debt from one month to the next.
• Although unexpected emergency expenses are a common reason for financial stress, higher costs and overspending also play a significant role.
• Many borrowers say it could take years to pay down their balances.

At least when it comes to credit card debt, many Americans are beginning 2025 in a worse financial position than they were previously.

A recent report by Bankrate indicates that 48% of cardholders now carry debt from month to month, an increase from 44% at the beginning of 2024. Of those with balances, 53% have been in debt for at least a year.

A majority of borrowers reported carrying a balance due to unforeseen or emergency expenses, often related to medical bills or home and car repairs. Some attributed their balances to higher daily expenses and excessive spending.

Ted Rossman, Bankrate's senior industry analyst, stated that high inflation and high interest rates have had a negative impact, and although the worst is over, the long-term effects will persist.

Consumers would likely bear the brunt of the cost of Trump tariffs.

Overall, Americans' credit card tab has continually crept higher.

The latest credit industry insights report from TransUnion for 2024's third quarter shows that the average balance per consumer is now $6,380, up 4.8% year over year.

Rossman calculated that if you made minimum payments on the average credit card balance ($6,380), it would take more than 18 years to pay off the debt and cost you more than $9,344 in interest over that time period, with annual percentage rates just over 20%.

Over the holiday season, a separate report by LendingTree found that 36% of consumers increased their debt load.

LendingTree found that 21% of those with debt anticipate it will take five months or more to pay it off.

A survey by WalletHub found that 24% of Americans will require more than six months to pay off their holiday shopping debt. Most consumers in the survey attributed their overspending to inflation.

According to John Kiernan, editor at WalletHub, numerous individuals require several months to settle their holiday debt due to excessive spending.

The best way to pay down debt

Consolidating credit card debt with a 0% balance transfer card is the best move, according to Bankrate's Rossman.

Without accruing any interest, you could pay approximately $300 monthly to eliminate the average credit card balance in 21 months.

According to Bankrate, 30% of credit cardholders anticipate paying off their debt in a year, while 41% expect it to take between 1 to 5 years. Additionally, 13% of individuals believe it will take over a decade to pay off their credit card debt.