Consumer Debt Reaches $18.20 Trillion: What You Need to Know

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The numbers are in, and they’re sobering. According to Equifax’s National Market Pulse report released February 24, 2026, total U.S. consumer debt reached $18.20 trillion by the end of 2025 — up 3.7% from a year earlier. Credit card balances alone hit $1.12 trillion, and the data shows a troubling “K-shaped divide”: higher-income consumers are building wealth while millions of others are stuck in a cycle of high utilization, delinquencies, and financial stress.

Here’s what that means for the average American: a lot of people are borrowing their way through life, and it’s not working.

Dave Ramsey says it clearly — you can wander into debt, but you can’t wander out. Getting out requires a plan, and that plan is the Debt Snowball. You list your debts smallest to largest, attack the smallest one with everything you’ve got while making minimum payments on the rest, then roll that payment into the next debt when it’s gone. Research shows people using this method are 14–43% more likely to eliminate their debt and do it faster than other approaches — because small wins build momentum and momentum builds belief.

The Equifax data also shows that subprime credit card utilization sat at a staggering 75.6% in Q4 2025. If you’re carrying a high balance, you’re not alone — but being in good company in a bad situation isn’t the goal. The goal is freedom.

You don’t have to figure this out alone. If you’re ready to make a real plan — one that actually works — I’d love to help. Schedule your free coaching consultation here: calendly.com/amber-otting/consultation

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Bibliography: Equifax Inc. (2026, February 24). Equifax National Market Pulse data shows U.S. consumer debt accelerating. PR Newswire. https://www.prnewswire.com/news-releases/equifax-national-market-pulse-data-shows-us-consumer-debt-accelerating-302696067.html

Ramsey Solutions. (n.d.). How the debt snowball method works. https://www.ramseysolutions.com/debt/how-the-debt-snowball-method-works

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