As US Credit Card Debt Soars, Record Number Of Americans Rely On Minimum Payments Amid Recession Fears And Trump Tariffs

A record-high percentage of U.S. households are making only minimum payments on their credit cards, according to new data released by Apollo Global Management Inc. Chief Economist Torsten Slok.

What Happened: In a report titled “How are U.S. consumers and firms responding to tariffs?” Slok highlighted Federal Reserve data showing the share of accounts making only minimum payments has climbed above 11% as of the first quarter of 2025, the highest level recorded since tracking began in 2012.

The trend shows a clear upward trajectory over the past decade, with a brief dip during the early pandemic period in the second quarter of 2020, followed by an accelerated rise to current record levels.

This growing reliance on minimum payments comes as Americans’ collective credit card debt reached an unprecedented $1.21 trillion by the end of 2024, up 7.3% from the previous year, according to Federal Reserve Bank of St. Louis data.

Why It Matters: Financial experts warn that making only minimum payments is a troubling sign of increasing consumer stress. A recent Experian survey found 40% of Americans mistakenly believe minimum payments are an effective debt management strategy.

The credit strain coincides with recent warnings from major corporations about consumer spending pullbacks. Southwest Airlines Co. CEO Robert Jordan stated, “I don’t care if you call it a recession or not, in this industry that’s a recession,” while PepsiCo Inc. CFO Jamie Caulfield admitted, “Relative to where we were three months ago, we probably aren’t feeling as good about the consumer now.”

Meanwhile, Apollo’s Slok has separately warned of a 90% chance of recession in 2025 if current tariff policies under President Donald Trump remain unchanged, potentially worsening consumer financial challenges in the coming months.

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