WATCH: Report: Americans are still paying off credit debt from last Christmas

“What we found is that through the end of the third quarter 2025, we're sitting at a credit card debt of $1.33 trillion,” WalletHub Analyst Chip Lupo said. “And you're looking at an average debt credit card debt per household of $11,019.”

Lupo says Americans are by nature a spending people. Not that that outlooks helps most people get ahead.

"Anyone that's using government spending as an example on how to manage their own finances is foolish in the first place," he continued. "And of course, people have that mentality. There are people out there saying, 'Well, the government's not responsible for their finances. Why should I be?'"

Lupo said part of the reason people are still digging themselves out of credit card debt is record inflation and wages not keeping up.

“They normally wouldn't put on credit cards everyday expenses like gas, like groceries in some cases, also utilities," he explained. "So, what happens is you carry that balance over to the next month and it's accruing interest at an average interest rate of about 22 or 23%. Now that's assuming that you have good credit. So, if you have less than good credit, there's a chance that you're paying on an interest rate much higher than that.”

Lupo said their recent surveys suggest Americans are spending less on average this year for holiday gifts than last year.

He recommends consolidating debt or transferring debt to lower interest credit cards if possible.

“Assuming that you have good credit in the first place, that’s an option,” Lupo said. “That’s the problem for a lot of people that get themselves in this situation and their credits shot and they don't have those options of doing a balance transfer. And if you do qualify for debt consolidation loans or even balance transfer cards, you're not going to get the best interest rates. So, it's important that you have a good enough credit score when you apply.”