Americans are hiding their credit card debt

One-third of Americans with credit card debt say no one else knows how much they owe, according to a new report.

The nation’s credit card balance hovers around $1 trillion, and interest rates routinely top 20 percent. A typical American household now carries around $10,000 in card debt, by one recent WalletHub estimate. A rising share of cardholders carry a balance from one month to the next.

And many consumers, it seems, would rather not share those facts.

Two in 5 Americans think credit card debt is embarrassing, according to a new consumer credit card report from NerdWallet, the personal finance site.

Credit card debt carries a growing stigma, polls suggest. An earlier NerdWallet survey found that one-third of married Americans with card debt haven’t told their spouse what they owe. In the new report, two-fifths of respondents said it would be all right to have a credit card a partner doesn’t know about.

As interest rates fell to historic lows in recent years, homeowners refinanced mortgages with interest rates of 3 percent or 4 percent, a transaction that conferred bragging rights.

By contrast, a consumer who takes on a new credit card in 2023 faces an average interest rate of 24 percent, according to LendingTree: nothing to brag about.

“There can be shame tied to that,” said Melissa Lambarena, a credit card expert at NerdWallet.

Multiple reports show American consumers sinking ever deeper into credit card debt. Rising card balances aren’t just about impulse buys: A survey by U.S. News & World Report found consumers using cards for unexpected expenses, medical emergencies and job loss.

The NerdWallet report draws on a survey of 2,078 adults conducted by The Harris Poll in April and May. The survey’s focus is financial secrecy, a poignant topic in an era of rising consumer debt paired with declining savings.

More than 2 in 5 partnered Americans said they have withheld or lied about financial information to a significant other, the survey found. People with partners kept secrets on pricey purchases, income levels and credit scores, as well as card debt.

Younger Americans are especially likely to keep financial secrets from a partner, the survey found: 63 percent of Generation Z and 58 percent of millennials said they had lied to or withheld financial details from a significant other, compared to 44 percent of Generation X and only 19 percent of boomers.

Many previous surveys have measured rising societal stress over credit card debt.

In a recent survey by WalletHub, a majority of Americans said they had more card debt than 12 months earlier. Nearly half said credit card debt stressed them out, and more than a quarter ascribed the debt to frivolous spending.

Another poll, from Bankrate, found 35 percent of adults carrying credit card debt from month to month. Of that group, two-fifths said they didn’t know how much interest they were paying.

“This is especially troubling,” Bankrate reported, “given that the average credit card interest rate is at an all-time high.”

The NerdWallet report includes tips for people who are keeping secrets about credit card debts and other financial hardships:

Consider opening up to someone about your finances, even if it’s not your partner. Sharing concerns can be cathartic and potentially helpful, the report says, especially for someone who needs help getting out of debt.

“If you are able to come forward and share it with someone, then you will have less pressure,” Lambarena said.

If you don’t feel safe sharing finances with a partner or parent, then consider professional help. One option is the nonprofit National Foundation for Credit Counseling.

Personal finance experts offer several other tips for people dealing with credit card debt, including the zero-interest credit card and direct appeals to the card company.