U.S. Economy and Household Debt

A new analysis from The Century Foundation and advocacy group Protect Borrowers finds that about 111 million Americans—roughly half of all credit card holders and 40% of U.S. adults—now carry credit card debt, a 17% jump from 95 million five years ago. The report says many were already unable to pay off monthly balances before the Iran war pushed gas prices roughly 34% higher in a month, worsening affordability strains; separate survey data show a quarter of Americans have skipped meals and a third have delayed medical care to cover expenses. With average card interest rates around 23.7%, consumers have paid an estimated $2.1 trillion in credit card interest since 2010, and the authors warn households are increasingly just scraping by with minimum payments. President Trump floated a 10% cap on credit card interest in January, which the report estimates could save borrowers $368 million in interest every day, but the proposal has stalled amid strong resistance from the banking industry, which argues such a cap would restrict access to credit. The findings feed into a broader debate online and in Washington over whether the current credit card system functions as a necessity for everyday bills or a profit engine that pushes working- and middle-class families toward financial collapse, especially as gas and other costs spike.