Does it seem like your credit card bills are arriving earlier each month? And that the balances keep getting bigger?
If so, you’re not alone. New survey data from CardRatings.com shows that a significant number of Americans have missed a credit card payment within the past year. Even more people feel they’re in danger of missing a payment.
These problems are not limited to lower-income Americans. Even some people in middle- and higher-income brackets say they’re struggling to keep up with their credit card debt.
Fortunately, there are steps you can take to ease the debt squeeze. A combination of strategies can help you not just make the next payment but also bring your credit balances down, so those payments shrink over time.
What the survey found about credit card payment struggles
Here are some of the key findings from the most recent CardRatings.com annual credit card survey:
- 6.4% missing at least one credit card payment in the past year
- 10% in danger of missing a credit card payment
- About 1 in 6 Americans struggling with credit card debt
- 20.3% typically unable to pay more than the minimum
- Payment struggles impacting all income groups, including earners making $200,000 or more
These are problems that don’t go away on their own. In fact, if you’re struggling just to make your minimum payments each month, the problem can become harder to manage, particularly if you continue adding new charges. You can take steps to reverse that trend.
Who is struggling with credit card payments?
Lower-income Americans are most likely to struggle with credit card payments. That’s no surprise, but it’s noteworthy that even some high earners miss payments or struggle to pay their credit card bills.
Of all the income groups surveyed, people making under $35,000 a year were most likely to have missed a payment within the past year. 8.4% of this income group reported missing one or more payments, and another 11% said they were in danger of missing one.
Broadly speaking, income was associated with how likely people were to have trouble with credit card payments. 8.1% of people making under $70,000 a year said they’d missed a payment within the past year, compared with 5.1% of those making $70,000 or more. Another 11.2% of the under-$70,000 income group said they were in danger of missing a payment, compared with 9.1% of the $70,000-and-over group.
Still, even the highest income group in the survey showed signs of financial strain. 5.7% of people making $200,000 or more said they missed a credit card payment in the past year, and another 7.9% of that group said they were in danger of missing one.
So naturally, a high income helps, but it doesn’t guarantee that you’ll be immune from problems with credit card bills. A combination of factors has made unmanageable credit card debt a problem you might find in any neighborhood in America.
Why are consumers struggling to keep up with payments?
Here are some of the factors contributing to consumers’ troubles with credit card payments:
- U.S. credit card debt has remained near historically high levels, according to the Federal Reserve Bank of New York’s Household Debt and Credit Report.
- That same New York Fed report showed that serious credit card delinquencies remain a concern.
- Inflation, which got as low as an annual rate of 2.3% in early 2025, has continued to put pressure on household budgets.
- Gasoline prices have been a particular problem. Higher transportation costs can leave households with less money available for other purposes. Price increases squeeze the ability of consumers to pay other bills.
- Long periods of unemployment can make it especially difficult for households to keep up with recurring credit card payments.
These economic challenges pose a dual threat to households when it comes to credit card debt. Tough conditions cause people to rely more on borrowing to make ends meet. Then, when those credit card bills come due, there is less money available to pay them.
What happens when credit card payments are missed
Missing credit card payments can worsen household financial problems in several ways:
- Late fees add to the cost of borrowing.
- Penalty interest rates are increased rates that some card issuers charge after a customer has missed payments, making it more expensive to carry debt.
- Rising balances often make the problem keep getting worse. Not only do late fees and penalty interest rates add to the cost of debt, but when you don’t pay down your balance, the full amount of any new charges adds to what you owe.
- Credit score damage may result because even one payment that’s at least 30 days late can hurt your credit score and may stay on your credit report for seven years.
As your credit card balances rise and you incur credit score damage, it’s likely to cost you more to borrow in the future.
How consumers can better manage credit card payments
The following are some ways consumers can break out of the spiral of rising debt balances and falling credit scores:
Prioritize payments for maximum cost effectiveness
If you can put any extra money toward paying down debt, use that money on your highest-interest debt first, while making at least the minimum payments on your other accounts. Prioritizing your highest-interest credit card will allow more of your future payments to go toward paying down debt instead of interest charges.
Set a budget that adjusts for new realities
It’s tough to pay down debt unless you stop adding to the problem. There’s no question that rising costs have stretched household budgets. However, you must accept that even if inflation slows down, prices aren’t likely to drop back to previous levels. This means you have to adjust your spending. Figure out what you can cut to bring spending in line with your take-home pay, so you don’t rely on continued borrowing.
Consider a balance transfer card to lower interest costs
Balance transfer cards offer reduced interest rates for a limited period of time. These rates can be as low as 0%, and some promotional periods last well over a year. Reduced interest costs can allow more of your payments to go toward paying down balances. The key is to get your credit card debt paid off before the 0% interest period expires. Be sure to account for any balance transfer fee when calculating potential savings.
Contact your credit card company for help
When you’re struggling with debt, your credit card company may seem to be the last place you’d want to get in touch with. However, if you can come up with a reasonable plan for eventually paying what you owe, they may be able to help. Ask whether the issuer offers hardship assistance, reduced payments, or other repayment options.
Frequently asked questions about struggling with credit card payments
Can one missed payment damage my credit score?
Why does my balance keep rising when I make the required payment every month?
Are 0% balance transfer cards available for people with poor credit?
ON THIS PAGE
- What the survey found about credit card payment struggles
- Who is struggling with credit card payments?
- Why are consumers struggling to keep up with payments?
- What happens when credit card payments are missed
- How consumers can better manage credit card payments
- Frequently asked questions about struggling with credit card payments
