When articles use statements like this they are being alarmist.
Americans are now carrying $1.25 trillion in credit card balances — a figure that hit an all-time record of $1.28 trillion at the end of 2025, the highest since the New York Fed began tracking the data in 1999. That represents a 63 percent increase in credit card debt since 2021.
Example, I put many of my monthly bills and almost all of my discretionary spending on credit cards. I pay that off every two weeks when I get my wage slave check. The Federal Reserve still counts that money as outstanding credit card debt when they collect their data.
These numbers need drilled down. How much of this is Americans moving a way from cash and towards cards? That is certainly happening. These numbers are only painting half a picture.
I'm not saying Americans aren't struggling, many are. These articles though, it's just boilerplate outrage slop without really digging into the economic reality.
Fun side note, economiccollapse.report is owned by JD Rucker and used to generate click worthy content for TheLibertyDaily. Not a bad business model tbh.
I pay that off every two weeks when I get my wage slave check.
You are such a bad consumer. Paying that off before it's due is damaging to your credit score.
Of course, carrying it to the end of the term is bad for your credit score.
Hmm.....
IDK about that. I just pay mine off when I have the money to, anywhere from two weeks to when it's due, and my credit score is in the upper 700s.
I have a friend who wanted to buy a house a few years back. Good credit, low 800s, but got denied. One of "flags" the bank gave him was he pays off the balance as he has the money. He told me that was one of the things they kept coming back to for some reason.
Credit card companies don't even care. They get that nice transaction fee from the merchant.
But your credit score!
I do the same with all of my bills. Shit I just put a car down payment on my credit card just to get the extra rewards. I'm paying it off as soon as it posts to the account.
I'm surprised the dealer let you do that. Good move on your part.
Only up to 5k. I still did more in cash as well, but that still a cool $100 in cashback for something I was buying anyways.
We do the same thing except we do it on a monthly basis. We get paid on the last day of the month. We charge as much as we can during the month and pay off the card before the billing due date. Then we use the 'free' airline miles for our trips out west to see out daughter/grandkids.
A common financial move. People doing this skew 'credit card debt' numbers. It's about a 50/50 split nationally between people who pay in full and people who carry a balance.
Of course. Not everyone is living paycheck to paycheck. I'm in Jew York City at the moment and I'm seeing people spending money... probably money they can't afford on junk.