Total household debt for Americans increased in early 2025 to more than $18 trillion, but credit card debt fell, according to the Federal Reserve.
In the first quarter of 2025, United States households owed $1.18 trillion in total debt, an increase of $167 billion from the previous quarter, even as credit card debt fell by $29 billion, according to the Quarterly Report on Household Debt and Credit.
Just 51% of U.S. households reported spending less money than they earned per month, and 30% matched their spending to their income in 2024, according to a survey from the Federal Reserve published in May.
Credit card debt can be connected to living beyond means, the Federal Reserve said. The survey highlighted that 39% of respondents said they were “doing OK” financially and another 34% said they were “living comfortably.” The numbers show that while 51% spend less than they earn, 22% of U.S. households overestimate their financial health.
In May, consumer credit increased at a seasonally adjusted annual rate of 1.2%, the Federal Reserve said July 8. Revolving credit decreased at an annual rate of 3.2%, while nonrevolving credit increased at an annual rate of 2.8%.
Access to credit can influence an illusion of stability.
About 33% of U.S. adults have more credit card debt than emergency savings which is down from 36% in 2024 and 2023, according to Bankrate’s 2025 annual emergency savings report. That percentage is still higher than in 2022, when 22% of Americans had more credit card debt than emergency savings.
The average credit card balance at the end of 2024 was $10,767 per household, $2,156 below the all-time record, according to WalletHub’s Credit Card Debt Study published in June.
Here’s what WalletHub found when analyzing U.S. credit card debt.
Which cities have the most credit card debt?
The state of California contains a majority of the highest ranking cities despite ranking 21st compared to other states. Here are the top 10 cities with most credit card debt:
Where do Michigan cities rank for credit card debt nationally?
Grand Rapids ranked 167th nationally with a total credit card debt of $856 million and a household credit card debt of $10,717
Detroit ranked 170th nationally with a total credit card debt of $2.6 billion and a household credit card debt of $10,607.
Which cities have the least credit card debt?
Where does Michigan’s credit card debt rank nationally?
Michigan ranked 25th nationally with a median credit card debt of $2,532, WalletHub said. It would take a household one year, seven days to pay off, based on the median credit card balance, assuming an average APR and monthly payment amount.
Which places have the most credit card debt?
These states and districts have the most credit card debt, according to WalletHub:
Which states have the least credit card debt?
These states have the least credit card debt, according to WalletHub:
Methodology
WalletHub compared 182 of the largest cities in the U.S., based on an analysis of data on consumers’ finances from TransUnion and the Federal Reserve.
Data used by WalletHub was collected from the U.S. Census Bureau, TransUnion and the Federal Reserve.
— Cassidey Kavathas is the politics and court reporter at The Holland Sentinel. Contact her at ckavathas@hollandsentinel.com. Follow her on X formerly known as Twitter @cassideykava.
This article originally appeared on The Holland Sentinel: How much credit card debt do Michigan residents have? What a recent analysis found
Reporting by Cassidey Kavathas, Holland Sentinel / The Holland Sentinel
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