If you’ve been feeling the squeeze at the grocery store and the gas pump lately, you’re not imagining it. And according to new data from WalletHub, those rising costs are showing up on our credit card statements in a big way.
As of February 2026, total U.S. credit card debt has reached $1.33 trillion. That’s a new record for the month in absolute terms. The average household is carrying about $11,036 in credit card debt, and the average interest rate? A staggering 21.52%.
Let’s break down what this means for you — and more importantly, what you can actually do about it.
The Numbers Tell a Story
WalletHub’s latest Credit Card Debt Study paints a picture that’s both sobering and surprisingly hopeful. Yes, $1.33 trillion sounds enormous. But when you adjust for inflation, it’s actually about 10% below the all-time record. The debt-to-deposit ratio — which measures how much we owe on cards compared to how much we have in savings — is 7.0%, which is 61% below the peak we saw in 2000.
That means people are saving more relative to what they owe. That’s real progress, even if it doesn’t always feel like it.
But here’s the catch: WalletHub projects credit card debt will grow by another $50 billion before the year is out. As their editor John Kiernan put it, “We aren’t going to get a break from inflated prices or high interest rates anytime soon, so people should plan accordingly.”
So let’s plan.
5 Moves You Can Make Right Now
1. Separate Your Spending From Your Debt
This is the single most impactful thing you can do if you’re carrying a balance. When you use the same card for new purchases and old debt, you lose your grace period. That means interest starts hitting every new purchase immediately — even the ones you could have paid off.
The fix: use one card strictly for paying down your balance, and a second card for everyday spending that you pay off in full each month.
2. Look Into a Balance Transfer Card
Some of the best balance transfer cards offer 0% interest for up to 24 months. That’s two full years where every dollar you pay goes directly toward your balance — not interest. If you’re paying 21.52% APR right now, this one move could save you hundreds or even thousands of dollars.
3. Get Serious About Your Budget
I know — budgeting isn’t glamorous. But it’s the foundation everything else is built on. There are excellent free tools available, including WalletHub’s own budgeting tools, that can help you see exactly where your money is going and where you have room to redirect toward debt payments or savings.
4. Use a Rewards Card for Daily Spending
If you’re paying your balance in full each month, a rewards card can put 1-2% back in your pocket on every purchase. Some cards even offer sign-up bonuses worth a couple hundred dollars. When the interest rate doesn’t matter (because you’re paying in full), those rewards are free money.
5. Work on Your Credit Score
Here’s a number that might surprise you: the average APR for someone with fair credit is 26.65%. For someone with excellent credit? 17.11%. That’s almost a 10-point difference. Improving your credit score is a long game, but it pays off in lower rates on everything — not just credit cards.
Your Next Step
You don’t need to do all five things at once. Pick the one that feels most doable this week. Maybe it’s opening a second card to separate your spending. Maybe it’s downloading a budgeting app tonight. Whatever it is, the important thing is to start.
The money decisions you make today are building the life you’ll live tomorrow. And you deserve a life where money works for you, not against you.
Data sourced from WalletHub’s Credit Card Debt Study.