You’re Paying $117 a Month for Nothing
$117.
That’s the number.
This is what the average credit card balance costs in interest every month. That money doesn’t pay the card balance done. It’s just the price of carrying the balance.
$117, every month.
The math here is pretty simple. Among people who carry a balance, the average is $6,519.¹ The average rate on cards that charge interest is about 21.5%.² Put those together, and you’re paying about $117 a month.
The sad part of course, is that you get nothing for it. No groceries, no gas, no movie night. It just leaves your account, and your overall balance barely moves.
Here’s what else $117 could be:
- The first real deposit in an emergency fund.
- About $900 if you let it appreciate in a 401k after 30 years.
- Dinner for two (tip included).
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- A whole barrel of oil, with a bit left over for a Starbucks run.
Instead, for your average American, it’s rent on money you already spent.
Over a year, that comes out to about $1,400 (which is actual rent).
The good news is that $117 isn’t a fixed price. Interest is charged on what you owe, so every dollar you pay off makes next month’s number smaller. Pay down $1,000 and that interest payment drops under $100.
Keep chipping away, and one day it’s zero.
That’s the good news, the bad news is, most people couldn’t tell you when they’ll be out of debt. If you think about, there’s no good reason for this.
If you know how much you owe, how much you pay towards your debt each month, and how much you make, you should be able to arrive at your debt free date pretty easily.
That’s why I built Overborrowed. Overborrowed is a different kind of budgeting app that shows you what your debt costs you each day and the date you’ll be done paying it all off. Best of all it’s free to use while in open beta.
Give it a try! Find out where you stand relative to your debt and use Overborrowed as a tool to keep you accountable.
Sources:
¹ TransUnion Credit Industry Insights Report, Q1 2026, via Financer.
² Federal Reserve G.19 Consumer Credit release, Q1 2026, rate for accounts charged interest, via Financer.
For education only, not financial advice. Monthly interest is estimated as balance × yearly rate ÷ 12.
