American household debt continues its upward trajectory, reaching new highs across multiple categories and creating significant financial strain for millions of consumers. According to recent Federal Reserve data, U.S. non-housing balances grew by $49 billion in a single quarter, with credit card balances jumping $24 billion in Q3 of 2025 to reach $1.23 trillion outstanding—nearly 6% higher than a year ago.
The debt burden extends beyond credit cards, with auto debt standing at $1.66 trillion, reflecting the ongoing cost of transportation amid elevated prices and interest rates. Retail and consumer finance borrowing is also expanding, with balances rising by $10 billion to total $550 billion, often driven by buy-now-pay-later-style financing and store cards. Student loan debt is growing again with balances increasing $15 billion, bringing the total to $1.65 trillion.
These trends point to a growing reliance on multiple forms of high-cost borrowing, making it harder for consumers to reduce balances and increasing the risk of long-term financial strain. "Too many Americans are stuck paying just enough to survive their debt, not escape it," says Howard Dvorkin, CPA and chairman of Debt.com. "When households rely on minimum payments, debt quietly becomes a long-term financial trap."
Debt Awareness Week, held Feb. 16-22, highlights the urgency of helping consumers move beyond minimum payments and understand their options for regaining control of their finances. The initiative offers a series of practical 7-Day Action Steps that anyone can start implementing immediately. Each day focuses on a specific task, from listing debts and identifying interest rates to reviewing spending, calculating your debt-to-income ratio, checking your credit report, and setting short- and long-term debt goals.
The cornerstone of Debt Awareness Week is Debt.com's Debt-Free Day Calculator, an interactive tool designed to help consumers visualize how much of their working life is dedicated to paying off debt. For the average American earning $62,000 annually, paying off $15,000 in debt would require over three months of full paychecks, assuming every dollar went toward debt and nothing else. "Our Debt-Free Day Calculator gives users clarity and a true picture of their financial well-being," says Don Silvestri, President of Debt.com. "It shows how many days you must work just to pay off debt, and that realization can be powerful."
The calculator works by having users input their total amount of personal debt, factoring in annual income, and converting the results into the number of days needed to work to pay off the debt, with a personalized "Debt-Free Day" displayed on a calendar. "It's a real wake-up call when you realize a significant portion of your year is spent working just to pay down your debt," Silvestri added.
As debt levels continue to rise nationwide, Debt Awareness Week underscores the importance of helping consumers understand the true cost of debt and move beyond minimum payments. By promoting education and practical tools available at https://www.debt.com, the initiative aims to give Americans the clarity they need to take control of their financial future.
