A report by the Epoch Times on Wednesday, Nov. 5, revealed this dire situation. The outlet, citing the Federal Reserve Bank of New York, noted that total debt reached a fresh record high of $18.59 trillion in the third quarter of 2025.

Credit card debt, a significant contributor to the overall household debt surge, has been climbing steadily. In September of this year, finance website WalletHub pointed out that credit card obligations rose by $28 billion during the second quarter of 2025 – increasing the total credit card debt to a staggering $1.32 trillion.

The average American household with debt owes $9,990 on their credit cards, a figure that has been growing at an alarming rate. This increase in credit card debt can be attributed to various factors, including the Wuhan coronavirus (COVID-19) pandemic that led to job losses and economic uncertainty – forcing many Americans to rely on credit cards to make ends meet.

Michael J. Panzner, in his 2007 book "Financial Armageddon," noted that "those struggling on the lowest rungs of the ladder would almost certainly bear the brunt of the early economic carnage. With an average of $3,800 in the bank, $2,200 in credit card debt, a $95,000 mortgage securing a $160,000 home and household earnings of approximately $43,000, the typical American family won't have a lot of room to maneuver."

The debt trap: How Americans are surviving on credit

Despite the concerns of a K-shaped economic recovery where the wealthy continue to prosper while the lower and middle classes struggle, household balance sheets remain solid, according to one market analyst. However, this assessment may not reflect the true financial strain experienced by many Americans, who are increasingly turning to credit cards to bridge the gap between their income and expenses.

The rising tide of household debt has far-reaching implications for American families. High levels of debt can limit financial flexibility, making it difficult for households to weather economic storms or invest in their future. Moreover, the high cost of servicing debt can divert funds away from essential expenses, such as healthcare and education, further exacerbating the financial strain on American families.