American household debt continues to escalate, with credit card balances reaching $1.23 trillion, auto debt at $1.66 trillion, retail and consumer finance borrowing totaling $550 billion, and student loan debt climbing to $1.65 trillion according to Federal Reserve data from February 6, 2026. U.S. non-housing balances grew by $49 billion in a single quarter, with credit card balances alone increasing $24 billion in the third quarter of 2025. These record numbers indicate millions of Americans are increasingly relying on multiple forms of high-cost borrowing, making it harder to reduce balances and elevating the risk of long-term financial strain.
Howard Dvorkin, CPA and chairman of Debt.com, emphasizes that many consumers are stuck managing minimum payments without understanding how long it may take to escape the cycle of debt. "Too many Americans are stuck paying just enough to survive their debt, not escape it," Dvorkin states. "When households rely on minimum payments, debt quietly becomes a long-term financial trap." This growing debt burden has prompted Debt Awareness Week, held February 16-22, which highlights the urgency of helping consumers move beyond minimum payments and understand their options for regaining control of their finances.
The initiative offers practical 7-Day Action Steps that anyone can implement immediately, focusing on specific tasks from listing debts and identifying interest rates to reviewing spending, calculating debt-to-income ratios, checking credit reports, and setting short- and long-term debt goals. These steps provide consumers with a clear pathway to begin improving their finances and understanding their complete debt picture. The cornerstone of Debt Awareness Week is Debt.com's Debt-Free Day Calculator, an interactive tool designed to help consumers visualize how much of their working life is dedicated to paying off debt.
Don Silvestri, President of Debt.com, explains that for the average American earning $62,000 annually, paying off $15,000 in debt would require over three months of full paychecks, assuming every dollar went toward debt and nothing else. "Our Debt-Free Day Calculator gives users clarity and a true picture of their financial well-being," Silvestri says. "It shows how many days you must work just to pay off debt, and that realization can be powerful." The calculator works by having users input their total personal debt amount, factoring in annual income, converting results into the number of work days needed to pay off debt, and displaying a personalized "Debt-Free Day" on a calendar.
As debt levels continue to rise nationwide, Debt Awareness Week underscores the importance of helping consumers understand the true cost of debt and move beyond minimum payments. By promoting education and practical tools like the Debt-Free Day Calculator, the initiative aims to give Americans the clarity they need to take control of their financial future. The growing reliance on credit cards, auto financing, retail borrowing, and student loans represents a significant shift in consumer financial behavior with implications for household stability, spending patterns, and long-term economic health.
