Last year, YSL News connected with several Americans struggling under the weight of credit card debt during the holiday season, sharing their experiences.

Little did we know, the situation would worsen.

As 2023 came to a close, the burden of credit card debt in the U.S. reached alarming levels, with the total credit card balances hitting an all-time high and average interest rates soaring to 21%, the highest recorded by the Federal Reserve in nearly 30 years.

Fast forward to the end of 2024, and the credit card crisis is even more severe. Current federal reports indicate that the average interest rate has climbed to nearly 22%, and some reports suggest it could be even higher.

By mid-2024, half of credit card holders were carrying debt month to month, according to data from personal finance site Bankrate.

In the third quarter of 2024, the total amount of credit card debt in the nation surged to $1.17 trillion, setting yet another record.

Many Americans entered the holiday season of 2024 still burdened by credit card debt accrued from the previous year’s festivities. The average balance on their cards is continuing to rise.

Given this troubling landscape, YSL News reached out once more to the six individuals we had highlighted back in December 2023, all of whom were grappling with credit card debt. We checked in to see how 2024 treated them.

Here’s what we discovered.

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 conclusion of a four-year struggle with credit card debt.

This Christmas brings a whole new set of challenges.

Their journey began in 2018 when the Dunns purchased a fixer-upper in Midland, Texas, with plans to transform it into their ideal home.

They planned to fund the renovations using $30,000 in personal loans, intending to refinance afterward to pay off those loans with a new mortgage.

When those personal loans fell short, the Dunns turned to their credit cards for support.

Then came Thanksgiving week in 2019 when Kayla lost her job. With a critical income gone, they relied even more on their credit cards, ultimately maxing them out. They struggled to manage the loans as their financial situation worsened.

Faced with the prospect of bankruptcy, the Dunns instead sought assistance from Money Management International, a nonprofit that specializes in debt counseling. They entered the program with a staggering $55,000 in debt spread across 14 accounts, with interest rates soaring as high as 28%.

With guidance from credit counselors, they managed to negotiate their interest rates down to an average of 3%. However, their monthly payments were still substantial, amounting to approximately $2,300, akin to a secondary mortgage payment.

Opting not to refinance, the Dunns decided to sell their dream home. Kayla eventually found a job as a financial analyst in San Antonio, while Walker worked in business relations for a maintenance firm. They relocated there with their two children, now aged 11 and 9.

To stay on top of their aggressive debt payments, the Dunns eliminated family vacations and postponed home improvement initiatives. By December 2023, their credit card debt had dwindled to just a few hundred dollars, and they anticipated being completely debt-free by January.

However, the new year brought new financial strains.

In January, they were hit with significant medical expenses; their insurance deductible had reset at $8,000, leading them to charge the payments to a credit card.

Other financial obligations surfaced as well: expenses for therapy and tutoring for their children who require special education services.

“Unfortunately, none of that is insurance-covered,” Walker Dunn remarked. “It really put us in a tough spot.”

They also had to hire attorneys to assist in advocating for their children within the public education system— a frequent and challenging experience for parents of special needs children. Their legal expenses were charged to credit cards as well.

Then, their daughter needed braces— another $4,000 charged to a credit card.

By the end of September, the Dunns’ credit card debt had ballooned to $25,000, this time with interest rates exceeding 30%.

The Dunns returned to the debt-management nonprofit for help once more. Their counselors worked out a manageable payment plan and negotiated lower interest rates for most of the debt.

Yet, costs continued to rise. Walker faced the necessity of replacing his aging pickup truck, and the family’s monthly mortgage increased by $500. Plus, come January, their health insurance deductible would reset again.

Last Christmas, the Dunns celebrated what they thought was the end of their credit card debt. This Christmas, they find themselves feeling hopeless.

“To be honest,” Walker Dunn expressed, “things look pretty grim.”

– Daniel de Visé

Evan Charon

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

Evan Charon is feeling more optimistic about his monetary situation.

At 25, Charon reports that a significant pay increase at work has enabled him to reduce his total debt—from student loans, credit card balances, and medical expenses— from around $22,500 to $20,700 in the past year. He has increased his monthly credit card payments and has built up enough savings to manage unexpected expenses like car repairs and vet visits for his cat, allowing him to feel financially secure when making new purchases.

eating out or buying a $5 movie ticket on Tuesdays.

“I can manage all my payments and still have some funds left for leisure activities,” shared Charon, an accountant from Cedar Rapids, Iowa. The increase in my paycheck “has truly made a significant impact. Without it, I’d likely be in a worse financial situation than last year.”

Updating his approach to handling debt has also been beneficial. Charon redirected some funds from his student loan payments to tackle the higher-interest credit card debts instead. So far, he has eliminated one of the six credit cards.

However, Charon continues to make sacrifices to reduce his debt. He avoids unnecessary spending, such as on streaming services, and plans to skip visiting family on the East Coast this holiday season to save money.

Looking ahead to 2025, Charon is concerned about potential changes from President-elect Donald Trump’s upcoming administration that might impact his financial efforts. Some economists are warning that Trump’s tariff proposals could lead to renewed inflation.

“Many other Americans in a financial situation similar to mine—with student loans and similar debt—will find it hard to manage the increasing costs of essential items like groceries and household necessities,” he explained. “I hope that the tariffs won’t cause as much economic disruption as some predict, but if they do, I believe we will adapt. We always find a way.”

– 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 finally clear her debt. But once again, unexpected costs have disrupted that goal for the third consecutive year.

Here’s a snapshot of her financial journey in 2024:

• $5,000 for a new air conditioning unit when her old one failed during last summer’s heatwave in Chicago. “Thankfully, that comes with 0% interest for two years,” she noted.
• $3,000 charged to a credit card for urgent dental surgery for her elderly dog.
• $2,000 for a special assessment payment required by her condo association for roof repairs. She recently made her final payment on this.
• $2,000 charged for necessary car repairs, including replacing brakes.

“I was making progress, and now I feel completely off course,” Mahoney expressed. “I honestly don’t know how I’ll manage to get out of this mess. It feels like I’m drowning.”

In previous years, Mahoney often depended on her tax refund in April to significantly reduce her debt. This year, she anticipates it will only help with about a quarter or a third of what she owes. As an alternative, she has been transferring balances to 0% interest credit cards whenever possible.

With a zero-APR credit card, you incur no interest for a promotional period generally lasting from 15 to 21 months.

“I just completed another balance transfer that incurred a small fee, but at least some of that amount will go interest-free for the next 18 months,” Mahoney disclosed. “I might consider another balance transfer for a 0% rate, although I know there’s usually a fee of 3-5%. However, I believe that fee is still less than the interest I would pay monthly.”

She has thought about applying for a home equity line of credit since the interest rates are lower than those on credit cards, but she does not yet have enough equity in her home to qualify.

“I could stop contributing to my 401(k) for a year to help pay off this debt, but that feels like throwing away free money considering my employer matches my contributions,” she reflected. “Yet, if I’m paying interest, it might be worth doing that or at least contributing enough to regain that match.”

Financial experts would say Mahoney is taking the right measures to manage her debt; however, she feels regret about having debt in the first place.

“I feel ashamed about it,” she stated, “but I’m at a loss for options. My earnings are limited.”

Finding a higher-paying job doesn’t seem feasible either. As a dietitian, “there’s no way I’m going to earn more elsewhere,” she explained. “I already earn significantly more than most dietitians do. I would need to switch careers to boost my income.”

At 41, starting over feels like an immense challenge. Besides, she enjoys her profession.

However, she admits, “It’s tough being the sole provider for my household. Five years ago, I was in a much better position,” she noted, but everything has become more expensive. For example, tickets for a movie during the Christmas break with her 8-year-old son cost her $50.

She endeavors not to let expenses spoil her Christmas celebrations and her enjoyment with her son, but she has set a spending limit of $200.

“At least I don’t have student loans and the burden of those high interest rates,” she acknowledged. Plus, “I have my health, which is priceless.”

– Medora Lee

Angela Davis

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

As the year ends in 2023, Angela Davis grapples with a hefty $19,000 in credit card debt, but she is poised for a frugal New Year.

This December, as she pays off her final debt, Davis has a cause for celebration.

At 32, she enrolled at the University of Michigan to pursue.

In 2018, Angela Davis started her pursuit of a master’s degree in public health. To fund her education, she relied on student loans and worked as a sanitation supervisor at a produce plant close to her home in Detroit, enduring 12-hour shifts. She believed she could manage both full-time work and her studies.

This balancing act lasted roughly two months before fatigue led Davis to resign from her job. Since student loans were insufficient to cover her living costs, she resorted to accumulating credit card debt.

Despite her diligent efforts to make payments, Davis found her credit card debt escalating, driven by interest rates soaring as high as 24%. She reached out to her credit card companies to negotiate lower rates and closed some accounts.

In 2022, she sought assistance from Money Management International, a nonprofit credit counseling service with the goal of paying off her credit card debt by early 2026. Still, she took the initiative to make extra payments and recently cleared her final $900 in debt.

“By 2025, I wanted to be completely debt-free,” she remarked. “My perspective has completely shifted to prioritizing a life without debt, even if others think it’s unachievable.”

Davis demonstrated resourcefulness in tackling her debt using a well-known method called the “snowball” approach. This involves focusing on paying off the smallest debts first, creating quick wins that motivate further progress.

These days, Davis eats at home more frequently. When dining out with her husband, she opts for water. She was careful with Christmas gifts in 2023, stating, “I’m still not planning to splurge.” Overcoming her credit card debt has brought about a significant change in her mindset.

— Daniel de Visé

Cynthia Davis

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

Last year, Cynthia Davis found herself burdened with a staggering $300,000 in student loans from college and graduate school. She had recently begun making $450 monthly payments, hoping that her work as a social worker would qualify her for one of President Joe Biden’s loan forgiveness initiatives.

As a single mother with two social work jobs and a side bakery business, Davis sought manageable payment options in 2023, particularly during the holiday season when she was trying to cover bills and purchase expensive computer equipment for her high school son.

Although her credit card debt was relatively modest at around $1,000 across two cards, she still faced high-interest rates while managing her other bills within a tight budget.

Last year, she moved into a home purchased by her parents to help with expenses, and she also acquired a new car and insurance, as her son had started driving, necessitating a larger vehicle.

Over the past year, especially in the last eight or nine months, significant changes have occurred in Davis’s life.

Davis entered a whirlwind romance with her now fiancé, Michael Reid Johnson. They are planning to marry in a private ceremony next month and intend to have an affordable reception for friends in the spring, complete with taco catering and her homemade desserts.

She will also be relocating to Dallas to live with Johnson as soon as she secures a new job. She is currently in the final stages of the hiring process with a company that is interested in her but may be temporarily freezing new positions.

Accepting this position would mean a substantial pay reduction for Davis. She estimates her current earnings at $120,000 from her combined full and part-time social work jobs in California. In contrast, the new role in Dallas would pay around $52,000, leading a team.

However, Davis noted that the cost of living in Dallas would be considerably lower. Her fiancé owns a house and has been covering her travel costs for visits, even suggesting she could take a single job that would cover her basic expenses, like car payments.

Her credit card debt has decreased to about $300, and her credit score has improved.

Davis’s son is a college freshman in California majoring in engineering. He lives with Davis’s parents but works to cover his expenses and has purchased his own car. Throughout the year and during Christmas, Davis helped him with various “adult” expenses like insurance and car repairs.

She also secured a student loan for her son, incurring about $7,000 in debt per year in her name. Although she acknowledges that adding more debt isn’t ideal, she believes it’s crucial for her son’s education. Once he achieves greater financial independence, she may seek his assistance in repaying this loan.

Davis estimates that her student loan payments haven’t significantly reduced her overall debt situation.

She remains hopeful about qualifying for Biden’s recent student loan forgiveness measures, expressing uncertainty about possible future relief with a potential Trump administration.

If loan forgiveness does not materialize, Davis said she will explore…

She plans to renegotiate her loans, as her future salary will be lower and her fiancé is also burdened with student loans.

“If my loans were forgiven, it would be a significant relief for me,” she stated. “I’ve applied previously and am still waiting for a response.”

Davis mentioned that she had received a notice earlier indicating that the program was paused. “Some of my friends got their loans forgiven, but I didn’t. It’s really frustrating,” she added.

– Betty Lin-Fisher

Alyssa Barnhart

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

Alyssa Barnhart, 31, shared that her financial anxiety has decreased since she consolidated her debt in late 2023.

After paying off her car earlier this year, she now contributes about $200 toward her credit card debt monthly, along with an additional $60 for student loans. Managing these payments feels “so easy” now, especially compared to the $500 she was initially paying monthly on credit cards.

“I definitely feel much better about my financial situation this year compared to last year,” she remarked.

However, she still faces financial challenges. Rent costs in Bozeman continue to rise, and she has been spending money to provide care for her aging Pitbull, Kiefer, including joint supplements.

Despite this, Barnhart considers this winter one of her best in a long time, feeling financially secure enough to buy gifts for friends and family without worry.

“I wrapped up my shopping about a week or two ago because I could afford it and wanted to finish it early,” she said. “I haven’t had to stress about how I’ll manage financially during Christmas.”

Working seasonally at a landscaping company and also at a senior living facility during the winter months, she attributes her financial improvement to a raise and valuable financial advice from friends and family.

“I’ve learned a lot about maintaining a positive mindset towards finances. Being an adult means managing bills and sometimes saying no to avoid spontaneous trips,” she said. “Having clear priorities is essential in achieving your financial goals.”

– Bailey Schulz