American households carry $420 billion in revolving credit-card debt

SAN FRANCISCO — According to NerdWallet's 2018 American Household Credit Card Debt Study, U.S. consumers now have a collective $13.51 trillion in total household debt.

Households that hold credit-card debt carry an average revolving balance of $6,929, NerdWallet found.

Credit-card debt continues to be one of the most expensive types of debt, and carrying that average balance of $6,929 could cost $1,141 per year in interest alone. The amount Americans pay in interest may increase if the Federal Reserve increases the federal funds rate, which is likely to take place this month.

"With interest rates rising, many consumers are facing rapidly growing credit-card balances in addition to other costs outpacing income growth, such as medical expenses and ballooning student loan debt," says Kimberly Palmer, NerdWallet's credit cards expert. "It's more important than ever to try to pay off variable, high-interest debt, such as credit-card debt, by paying off more than the minimum payment each month, but many consumers struggle to do so due to other demands on their income."