Too-trusting man is costing his mother great amounts in scams: Highland Heights Police Blotter

As living costs continue to strain household budgets, millions of Americans are increasingly relying on credit cards to cover everyday expenses, driving debt to record levels and leaving many struggling to keep up with payments.
With credit cards being used by nearly three-quarters of Americans and accounting for the majority of retail spending, a report suggests that rising debt and borrowing costs are becoming a central pressure point for household finances nationwide.
Why It Matters
New analysis from The Century Foundation and Protect Borrowers has found roughly 111 million people, or more than 40 percent of U.S. adults, are unable to pay off their credit card balances each month. Instead, they carry debt forward, often facing interest rates exceeding 22 percent on average, which compounds what they already owe.
The findings come amid ongoing debate over credit card regulation. In January, President Donald Trump proposed capping interest rates at 10 percent, saying it would prevent Americans from being “ripped off” by card issuers. However, the proposal has yet to be implemented.
Growing Debt Burden
Americans collectively owe about $1.27 trillion on their credit cards, according to the report. Around 227 million adults now carry some form of credit card balance.
For many, this debt is not short-term. About 68 million cardholders are considered “debt-stressed,” meaning they are using at least 30 percent of their available credit. This group holds nearly two-thirds of all outstanding credit card debt, close to $800 billion.
An even more precarious subset—over 27 million Americans—can only afford to make minimum payments. While this may keep accounts in good standing, it leaves borrowers paying heavily in interest over time. On average, a debt-stressed cardholder making minimum payments would spend about $251 per month, or more than $3,000 annually, while barely reducing the principal balance, the report found.
Rising Costs and Interest Rates
Since 2018, the average monthly payment has climbed by nearly 40 percent, rising from $1,441 to $1,994—far outpacing inflation. The increase has continued in recent years, with annual payments growing further as interest costs mount.
Interest rates themselves have more than doubled over the past decade. Federal data shows average rates now exceed 20 percent, significantly increasing the cost of borrowing. Meanwhile, banks have expanded their profit margins by widening the gap between what they pay to borrow money and what they charge consumers, more than doubling those margins since the financial crisis.
Since 2010, Americans have paid a cumulative $2.1 trillion in credit card interest, which surpasses the nation’s total outstanding auto loan and student loan balances.
Utilization rates among debt-stressed borrowers have also risen, with many nearing their credit limits. Among those with the lowest credit scores, cards are almost entirely maxed out.
At the same time, more than one in eight cardholders has fallen behind on payments, collectively owing over $163 billion in delinquent debt.
Communities of color are disproportionately affected, the report found, with higher rates of missed payments and greater reliance on high-cost credit. Many are also turning to alternative financial products, such as payday loans or buy-now-pay-later services, to stay afloat.