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A credit card can be an important life raft — until the debt starts pulling you under.

That’s the turning point many Americans may be approaching right now: According to a new Bankrate survey, one-third of U.S. credit card borrowers now cite basic needs like groceries, utilities, and childcare as the main cause of their debt. Another 41% point to emergency expenses such as medical bills or car repairs.

Using credit cards to make ends meet can make the resulting debt tough to keep up with — let alone pay off. The National Foundation for Credit Counseling’s latest “financial stress” forecast — a predictor of credit card delinquency rates — suggests stress levels will reach record highs in the first quarter. As credit card interest rates average over 22%, the nonprofit group says more of the people it counsels are overextended without any disposable cash.

“We are seeing a disturbing shift from discretionary debt to survival debt,” NFCC CEO Mike Croxson said in a statement last week.

The NFCC warns that credit card delinquency rates have yet to reveal the full extent of the strain. People who need their cards to subsist tend to prioritize those payments over other bills, masking their vulnerability until they default.

But missed payments are already a growing problem: In the fourth quarter of last year, 12.7% of all balances were at least 90 days overdue, according to the Federal Reserve’s quarterly report on household debt. That’s up from about 7.7% three years earlier.

And credit card debt is taking longer to pay off: 61% of U.S. credit card borrowers have been in debt for at least a year, up from 53% in 2024, according to the Bankrate survey, taken in December. Twenty-one percent have been in debt for 5+ years.

So what?

Credit cards can quickly turn from a temporary life vest to a sinking weight when you’re only paying the required minimum. Because the interest compounds daily, the debt can get heavier and heavier, holding you back from goals like saving for retirement, buying a home, or just building a healthy buffer of savings.

If you’re feeling this weight, here are a few ways to potentially lighten the load:

•  Negotiate your rate. There are no guarantees, but a quick call to your bank could land you a lower interest rate just because you asked.

•  Bump up your payments. Paying even a little more than the minimum helps chip away at the actual balance rather than just the interest.

•  Consolidate the debt. Moving your balances into one lower-rate loan can potentially save you money. (We like SoFi’s debt consolidation options.)

•  Move the balance. A card with 0% interest gives you a breather from finance charges. Just keep an eye on the transfer fees and the expiration date.

•  Use your home equity. If you own your home, explore whether you can get a home equity loan with a lower interest rate. (Another option with SoFi.)

•  Call a credit counselor. Nonprofits can help you build a manageable plan to get out of debt for good.

Related Readings

More Americans Are Losing the Luxury of Choice (SoFi)

US Consumer Delinquencies Jump to Highest in Almost a Decade (Bloomberg via MSN)

5 Ways to Reduce Credit Card Interest (NerdWallet)

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