Last year, YSL News spoke to Americans nationwide who were struggling with credit card debt during the holiday season and shared their experiences.

Little did they know, the situation could worsen.

By late 2023, Americans were grappling with overwhelming credit card debt, with the total national balance reaching an all-time high. The average interest rate soared to 21%, the highest it had been in nearly 30 years of tracking by the Federal Reserve.

As 2024 approaches its end, the issues surrounding credit card debt have escalated further. As of August, the average interest rate has now approached nearly 22%, with some reports indicating even higher figures.

Mid-year data from the personal finance platform Bankrate reveals that half of credit card holders carry debt from month to month.

In the third quarter of 2024, the nation’s credit card debt surged to $1.17 trillion, marking yet another record high.

Numerous Americans entered the 2024 holiday season still burdened by credit card debt from the previous year. The average credit card balance continues its upward trend.

Given this difficult landscape, YSL News revisited the six Americans we profiled in December 2023, all of whom were dealing with credit card debt. Here’s an update on how they managed through December 2024.

Here’s what we found out.

Walker Dunn

• Age: 43
• Hometown: San Antonio
• Debt in 2023: A few hundred dollars
• Debt in 2024: More than $20,000

Last Christmas, Walker and Kayla Dunn celebrated the end of a four-year struggle with credit card debt.

This Christmas, they face a new challenge.

It all started in 2018 when the Dunns purchased a fixer-upper in Midland, Texas, eager to turn it into their dream home.

They aimed to finance the renovation with $30,000 in personal loans and planned to refinance with a cash-out mortgage to pay off the loans after the work was complete.

When their personal loans were exhausted, the Dunns resorted to using credit cards.

Then, in November 2019, Kayla lost her job during Thanksgiving week. This loss of income led them to rely even more on their credit cards, eventually maxing them out and struggling to manage their loans.

Considering bankruptcy, they instead reached out to Money Management International, a nonprofit offering debt counseling. They entered the program with $55,000 in debt across 14 accounts, facing interest rates as steep as 28%.

With the help of credit counselors, they could better manage their debt, successfully negotiating the interest rates down to an average of 3%. However, their monthly payments tallied around $2,300, comparable to a second mortgage.

Opting not to refinance, the Dunns sold their dream home. Kayla secured a new job as a financial analyst in San Antonio, while Walker works in business relations for a maintenance company. They moved with their children, now aged 11 and 9.

To manage their debt, the Dunns cut back on family vacations and postponed renovations. By December 2023, they had only a few hundred dollars left on their credit cards and anticipated being debt-free by January.

However, the new year brought unexpected expenses.

In January, they faced hefty medical bills following the reset of their health insurance deductible at $8,000, which went on a credit card.

Additional expenses soon followed, including therapy classes and tutoring for their children, which were not covered by insurance.

“That really hit us hard,” Walker Dunn explained.

They also hired attorneys to help navigate the public school system for their children’s special education needs, with these fees charged to their credit cards.

Moreover, their daughter required braces, costing another $4,000 added to their credit card debt.

By September, the Dunns found themselves with $25,000 in new credit card debt, compounded by interest rates exceeding 30%.

They returned to the debt-management nonprofit for assistance again, where counselors arranged a payment plan for much of the debt, negotiating lower rates once more.

Yet, costs continued to rise. Walker had to replace his aging pickup truck, and their mortgage payment increased by $500 monthly. In January, they would face another deductible reset.

Last Christmas, the Dunns celebrated being free of credit card debt.

This Christmas, they feel there’s no relief in sight.

“Honestly,” Walker Dunn remarked, “I think things look rather bleak.”

– Daniel de Visé

Evan Charon

• Age: 25
• Hometown: Cedar Rapids, Iowa
• Debt in 2023: $22,500
• Debt in 2024: $20,700

Evan Charon feels more optimistic about his finances now.

This 25-year-old has successfully reduced his debt from $22,500 to $20,700 over the past year thanks to a significant raise at work. He has increased his monthly payments on credit card debt, built up savings to handle unexpected expenses like vehicle maintenance and vet bills for his cat, and feels more secure with his income moving forward.

“Thanks to my raise, I’m managing all my bills and still have some leftover for fun activities,” said Charon, an accountant from Cedar Rapids, Iowa. The increase in pay “has truly made a huge difference. Otherwise, I might still be in a difficult position like last year.”

Changing his debt repayment approach has also been beneficial. Charon opted to redirect some funds from his monthly student loan repayments towards paying off credit cards with higher interest rates. He has successfully eliminated one of the six credit cards.

Despite his progress, Charon still makes sacrifices to reduce his debt. He steers clear of non-essential spending, like monthly streaming subscriptions, and has decided not to visit his family on the East Coast during the holiday season to save money.

As he looks toward 2025, Charon expresses concern about the potential impacts of President-elect Donald Trump’s upcoming administration on his financial progress. Economists have cautioned that Trump’s proposed tariffs could lead to rising inflation.

“Many other Americans in my income bracket, dealing with student loans and similar debt issues, may struggle to keep up with the increased costs of essentials like food and household items,” he stated. “I hope the tariffs won’t adversely impact the economy as some predict, but if they do, I believe we will adapt as always.”

– Bailey Schulz

Kim Mahoney

• Age: 41
• Hometown: Chicago, Illinois
• Debt in 2023: Approximately $6,000
• Debt in 2024: Approximately $12,000

This was meant to be the year that single mother Kim Mahoney would clear her debts. Unfortunately, for the third consecutive year, unexpected costs disrupted her plans.

Here’s a look at her financial journey throughout 2024:

• $5,000 for a new air conditioner after her old unit failed during a summer heat wave in Chicago. “Thankfully, it’s 0% interest for two years,” she mentioned.
• $3,000 charged on a credit card for necessary dental work for her aging dog.
• $2,000 for a special assessment from her condo association due to roof repairs, which she has just completed paying this month.
• $2,000 charged for car repairs, which included replacing the brakes.

“I was making progress, and now I feel completely off course,” Mahoney expressed. “Honestly, I’m not sure how I will get out of this situation. It feels like I’m struggling to stay afloat.”

In the past, Mahoney often depended on her tax refund in April to significantly reduce her debt. However, she anticipates that this year’s refund will only cover about 25-33% of her debts. To tackle her debt, she has been transferring as much as possible to credit cards with 0% interest rates.

Using a zero-APR credit card allows customers to pay no interest for a promotional duration, generally lasting between 15 to 21 months.

“I recently completed another balance transfer, which included a small fee, but at least part of that won’t accrue interest for the next 18 months,” Mahoney explained. “I might consider another balance transfer at 0%, but I am aware that it usually incurs a fee of 3-5%. Still, that fee is lower than the monthly interest I would otherwise pay.”

She contemplated opening a home equity line of credit, which typically carries lower interest rates than credit cards, but stated she doesn’t have sufficient equity in her home to qualify yet.

“I could stop contributing to my 401(k) for a year to pay off some debt, but that feels like losing out on free money since my employer matches contributions,” she shared. “However, if I’m incurring interest, maybe it makes sense to scale back, or at least contribute just enough to receive the match.”

Financial advisors might say that Mahoney is taking all the right measures to manage her debt, but she expresses regret over accumulating it in the first place.

“It’s a source of embarrassment for me,” she admitted, “yet I’m unsure of what else to do. My income is limited.”

Finding a higher-paying job doesn’t seem feasible, either. As a dietitian, “the salary I earn is already more than most in the field,” she remarked. “I would need to change careers entirely to earn more.”

Starting anew at age 41 feels daunting. Furthermore, she enjoys her work.

However, she confesses, “maintaining a single-income household is challenging. I was in a much better place five years ago,” but prices have surged. For example, a movie outing during the Christmas break with her eight-year-old son costs $50, she noted.

While she strives to celebrate Christmas and enjoy life with her son, she has set a spending limit of $200.

“At least I don’t have student loans accumulating those outrageous interest rates,” she remarked. “And I value my health, which is priceless.”

– Medora Lee

Angela Davis

• Age: 32
• Hometown: Detroit
• Debt in 2023: Approximately $8,000
• Debt in 2024: Zero

As 2023 comes to a close, Angela Davis was battling to pay off $19,000 in credit card debt, which led to a restrained New Year ahead.

This December, as she wraps up her debt repayments, Davis has some good news to share.

Davis, 32, enrolled at the University of Michigan

In 2018, Angela Davis began her master’s degree in public health. To fund her studies, she relied on student loans and worked long 12-hour shifts as a sanitation supervisor at a nearby produce facility in Detroit. She believed she could manage both her job and her coursework simultaneously.

However, after about two months of this grueling schedule, she found herself too worn out and resigned from her position. With student loans barely covering her expenses, she started accumulating credit card debt.

Despite her efforts to make timely payments, her credit card balances continued to grow due to high interest rates, reaching as high as 24%. She negotiated with credit card companies to reduce her rates and closed some accounts.

In 2022, Davis sought help from Money Management International, a nonprofit credit counseling organization, to tackle her remaining debt.

The plan outlined by the counselor aimed for her to be free of credit card debt by early 2026. However, with determination, she made extra payments on her own and successfully paid off the final $900 this month.

“For 2025, I aimed to be completely debt-free,” she stated. “My focus has shifted significantly to achieving a debt-free lifestyle, even when others believe it’s unattainable.”

Davis employed the “snowball” method to reduce her debt, where one focuses on paying off the smallest balances first for psychological benefits, alongside financial wins.

Currently, she opts to cook at home more often. When dining out with her husband, she refrains from ordering anything but water. She also restrained herself from overspending on gifts for Christmas 2023, saying, “I still plan to exercise caution.” Her journey out of credit card debt has profoundly influenced her mindset.

– Daniel de Visé

Cynthia Davis

• Age: 53
• Hometown: Perris, California; soon to be Dallas, Texas.
• Debt in 2023: Approximately $1,000 in credit card debt, alongside $300,000 in student loans
• Debt in 2024: $300 in credit card debt — and the student loans

Last year, Cynthia Davis struggled under a massive $300,000 burden of college and graduate school loans. She had just started making monthly payments of $450 and hoped that her career as a social worker might allow her to qualify for one of President Joe Biden’s loan forgiveness programs.

Balancing two social work jobs and running a side bakery business, Davis utilized available payment plan options in 2023 while holiday shopping for her son, who was in high school. As a single mother, she faced the challenge of managing expenses while catering to her son’s need for costly computer equipment.

Last year, Davis’ credit card debt was manageable, around $1,000 spread across two cards. Despite the low balance, she dealt with high-interest rates while prioritizing her bills.

After recently moving into a house purchased by her parents, she faced additional finances like insurance and a new car payment, as her son had just started driving, and they needed a larger vehicle.

Much has transpired for Davis since she turned 53, especially in the last several months.

In a rapid romance, she became engaged to Michael Reid Johnson. They plan a small wedding ceremony next month, followed by a modest reception in spring featuring tacos, with Davis handling the desserts.

Davis is also preparing to move to Dallas to join Johnson after securing a new job. She is in advanced talks with a potential employer but may face a temporary hiring freeze.

Accepting this job would mean a significant pay cut for Davis. She currently earns about $120,000 from her full-time and part-time social work positions in California but anticipates making around $52,000 for a single role in Dallas, where she would oversee a team.

However, she noted that the cost of living is considerably lower in Dallas. Johnson owns his home and has been funding her visits and outings together. He has encouraged her to consider a single job that covers her essential costs, like car payments.

According to Davis, her credit card debt has dwindled to approximately $300, and her credit score has improved.

Davis’ son is a college freshman in California, studying engineering. He lives with her parents but works to cover his expenses and has purchased his own car. Throughout the year and at Christmas, she has supported him with some necessary expenses, such as insurance and car repairs.

In addition, Davis has taken out a student loan for her son, amounting to about $7,000 per year.

She acknowledges that increasing her debt was not a wise decision, but emphasizes, “He needs to pursue his education.” Once her son achieves better financial footing, she may ask for his assistance in repaying the loan.

Davis estimates that her student loan payments this year haven’t significantly reduced her total outstanding debt.

She still hopes to gain from Biden’s latest student loan forgiveness initiatives recently announced. She meets the criteria and is optimistic about being included, as she doubts future administrations will offer similar relief regarding student debt.

If the loan forgiveness doesn’t materialize, Davis mentioned that she will attempt to renegotiate her loans due to a decrease in her salary, alongside her fiancé who also has student loans.

“If my loans were forgiven, it would make a huge difference for me,” she expressed. “I’ve applied previously and I’m still waiting.”

Davis mentioned that she received a letter indicating that the program is currently on hold, “but some of my friends have had their loans forgiven, and I haven’t, which is quite frustrating.”

– Betty Lin-Fisher

Alyssa Barnhart

• Age: 31
• Hometown: Bozeman, Montana
• Debt in 2023: Approximately $9,000
• Debt in 2024: Approximately $7,000

Alyssa Barnhart, 31, reported that her financial stress has lowered since she consolidated her debts at the end of 2023.

After clearing her car loan earlier this year, she is now paying about $200 monthly towards credit card debt and an additional $60 for student loans. Payments feel “much simpler” now, especially compared to when she used to pay $500 a month towards credit card bills.

“I definitely feel much better about my finances this year compared to the previous year,” she remarked.

However, financial challenges still exist. Rent in Bozeman continues to rise, and Barnhart spends money on joint supplements for her aging 13-year-old Pitbull, Kiefer, to keep him comfortable.

Nevertheless, she considers this winter to be one of her best in recent times, having enough funds to buy “as many gifts as I desire” for her friends and family.

“I wrapped up my shopping a week or two ago because I could afford it and wanted to finish it early,” she said. “I haven’t had that worrying feeling of, oh no, how will I come up with the money for Christmas?”

Barnhart holds a seasonal job with a landscaping company and works at a senior home during the winter. She attributes her improved financial situation to a pay raise and a better grasp of money management, thanks to advice from friends and family.

“I have really learned a lot about maintaining a better mindset regarding finances. Being an adult means paying bills; you can’t just go on trips whenever. You have to prioritize your expenses to reach your financial goals,” she said.

– Bailey Schulz