New data shows U.S. credit card debt has climbed to nearly $1.28 trillion, placing household revolving balances near record highs. As interest rates remain elevated, how consumers use credit matters more than ever.
“Credit itself isn’t the problem; it’s how it’s used,” says Meredith Bureau, Hillsdale branch manager at OnPoint Community Credit Union. “Good credit can support long-term goals and financial stability, while high-interest, revolving debt can undermine progress if it’s left unchecked.”
With the latest statistics from the Federal Reserve and the Federal Reserve Bank of New York showing American consumers have amassed about $1.28 trillion in revolving credit card balances, OnPoint encourages consumers in Oregon and southwest Washington to ask whether credit use is helping or hurting their financial health. OnPoint offers the following guidance to help navigate today’s credit landscape:
- Understand the difference between good and bad credit. Good credit is typically tied to long-term goals such as education, a home or reliable transportation. It is managed with a clear repayment plan. Bad credit often shows up as high-interest, revolving balances that grow over time and strain monthly budgets.
- Pay attention to interest rates, not just balances. With credit card rates remaining high, even modest balances can generate significant interest costs. Paying off higher-rate debt first can lead to faster savings.
- Watch for warning signs. Relying on credit cards for everyday essentials, carrying balances near credit limits, or making only minimum payments can signal that credit is becoming a liability rather than a tool.
- Create a payoff strategy. Listing balances, interest rates and due dates helps bring clarity. Focusing on the highest-interest balance first or setting up automatic payments can reduce stress and prevent late fees.
- Consider consolidation — carefully. Options like personal loans or balance transfers can make sense as long as they have a clear plan and timeline to pay down debt, rather than simply extending it.
- Use trusted financial guidance. Credit unions often provide personalized counseling, budgeting tools and member-focused products designed to help people manage credit responsibly and build stronger financial footing. OnPoint members can also access personalized financial counseling through the credit union’s GreenPath Financial Wellness partnership.
“Credit should work for you, not against you,” Bureau adds. “Small, intentional steps, especially now, can make a meaningful difference in both credit scores and peace of mind. And OnPoint is here to support our members as they achieve their financial goals.”
