Consumers Get Credit Card Act Together in Q3

By: M. Scott Morris
Published: December 15th, 2025

The Federal Reserve's Consumer Credit report showed there was a $16 billion increase in credit card debt on an inflation-adjusted basis during Q3. According to WalletHub, the increase in credit card debt during Q3 is around 27% smaller than the increase in Q3 2024.

"Consumers are getting their act together ahead of the holidays, like kids on their best behavior with Santa and the Elf on the Shelf watching," said John Kiernan, WalletHub editor. "Not only did we add significantly less debt to our tab in the third quarter this year compared to the same time last year, but preliminary data for October is expected to show almost no change in debt year over year."

Key highlights from WalletHub’s new Credit Card Debt Study include:

• Debt is well below the peak. Total credit card debt as of Q3 is projected to be roughly $1.33 trillion on an inflation-adjusted basis, which is about 13% below the record high.
• Household debt has some breathing room. The average household credit card balance at the end of Q3 is projected to be around $11,019 after adjusting for inflation. That's $2,065 below the record high.
• Early Q4 returns. Preliminary data for October shows a 0.2% decrease in credit card debt compared to the same month last year.
• Best balance transfer credit cards. The best balance transfer credit cards currently offer 0% APRs for up to 24 months with no annual fee and low balance transfer fees.

"If we can keep this up, it would be great news for the financial health of U.S. households and the economy more broadly," Kiernan said. "But if history is any indication, we're in for a massive influx of debt before 2025 comes to a close."

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