Credit card debt in the U.S. has climbed to $1.25 trillion. Many Americans manage four or five cards. Interest rates average around 24%, making essentials like groceries costly on credit. Balances get shifted between cards just to stay current.
Meanwhile, banks posted record profits last year, fueled largely by high credit card interest income.
“U.S. credit card debt reached $1.25 trillion in mid-2025.”
https://www.federalreserve.gov/releases/g19/current/default.htm
“Major banks reported record 2024 profits, boosted by credit card interest.”
https://www.wsj.com/articles/banks-post-record-profits-2024-credit-card-interest-11688037312
This cycle traps many in growing debt. Rising rates worsen the problem. It is clear the system benefits lenders more than borrowers.