Average Household Budget Deficit Nears $1,000/Month; Credit Counseling and Debt Management Options Available

[Para 1: The Lead] As interest rates and living costs climb, the average U.S. household facing credit card debt now experiences a monthly budget deficit of nearly $904, up from $439 in 2020 and $162 in 2021. Many are forced to rely on credit cards to cover expenses, creating a self-reinforcing cycle of rising balances and interest. [Para 2: Supporting details & Context] The average credit card interest rate for accounts assessed in November 2024 was 22.3%, up from 16.28% in 2020 and 23.37% in Q3 2024. The average 2025 GreenPath client credit score was 582—down from 640 in 2020—often leading to rates as high as 28%. The average monthly budget shortfall hit $904 in 2025, with some households nearly $1,000 short per month. [Para 3: Supporting details & Context] Resources include free counseling and debt management programs through GreenPath Financial Wellness (855-982-0062, greenpath.com) and the National Foundation for Credit Counseling (800-388-2227, nfcc.org). GreenPath reports 65,000+ participants in 2025 repaying ~$300M at lower rates, with about 52,000 active plans as of January. Debt management can average a $390/month payment from $589/month and take about 50 months to resolve. Contact your card issuer directly to negotiate temporary, reduced rates (2%–12% for 3–9 months). Note: Proposed 10% federal cap on credit card rates is legislative and likely to reduce credit availability; avoid predatory lenders and do not delay help.