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Americans Struggle with $1.23 Trillion Credit Card Debt

12/11/2025

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Summary

Story summary

Americans hold over $1.23 trillion in credit card debt, with average interest rates exceeding 22%.
Many borrowers pursue debt settlement, typically 50%–70% of the original balance, with initial offers around 30% to negotiate.
Debt with a collection agency may yield lower settlements.
Borrowers should consider the impact on credit scores and potential tax implications before proceeding.

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Story summary

Americans hold over $1.23 trillion in credit card debt, with average interest rates exceeding 22%.
Many borrowers pursue debt settlement, typically 50%–70% of the original balance, with initial offers around 30% to negotiate.
Debt with a collection agency may yield lower settlements.
Borrowers should consider the impact on credit scores and potential tax implications before proceeding.