Americans Still Owe $1.25 Trillion on Credit Cards as Interest Tops 23%: Experts Say This One Call Helped Over 80% of Borrowers Get a Lower Rate

Credit card debt is the kind of money problem that can look manageable until the interest starts doing the work.

New York Fed data show credit card balances stood at $1.25 trillion in Q1 2026 after a seasonal decline from the previous quarter. Good Morning America tied that number to household budget pressure and offered practical advice for borrowers trying to lower the cost of carrying balances.

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The problem is not only the amount owed. It is the rate attached to it. GMA reported the average rate for a new credit card was 23.7%, a level that can make even small balances harder to pay down.

The debt is large, but some borrowers may still have levers to pull.

The first move is asking for a lower rate. Matt Schulz, LendingTree’s chief credit analyst, told GMA that too few people ever ask. According to LendingTree (TREE) survey data cited by GMA , more than four out of five cardholders who ask receive a lower rate.