Hoosiers Are Seeing a Surge of Credit Card Debt

STATEWIDE — Credit card debt is soaring across the nation and Hoosiers are feeling the financial challenges.

A new study from digital personal finance company Achieve, which analyzed data from the Federal Reserve Bank of New York, found that the average credit card balance has increased 3% over the past year. Indiana’s average balance still continues to be below the national average but increased by 3% between Q4 of 2024 and Q4 2025.

The study shows the average Hoosier carried $3,410 in credit card debt at the end of 2025. Indiana is 7th in the country in having the lowest credit card debt, while carrying $940 less than the national average.

The most common reasons that someone is burdened with credit card debt include medical expenses, being unemployed, and divorces. Attorney and Partner Richard Shea at Sawin and Shea LLC explains that COVID also has had a significant impact on the recent surge in credit card debt.

“During COVID, there was a huge loss in employment and small businesses were forced to shut down,” Shea said. “After COVID, many people had to play catch-up in order to maintain their living expenses. In order to play catch up, going into debt was a form of recovery.”

Another reason why Hoosiers are seeing high credit card debt is due to inflation.

“Hoosiers are feeling the financial hit due to the cost of rent, house payments, fuel, and the cost of basic essentials Hoosiers need to live on,” Shea added.

Shea offers these words of advice for those carrying credit card debt:

“There are many different approaches like credit counseling, debt settlement, and filing for bankruptcy,” he said. “Each of these approaches has pros and cons, but it will help someone who has credit card debt understand the situation they are in and how to come out of debt.”

Furthermore, Shea said credit card debt does not just happen overnight. It can become a snowball effect that can last for years for most people.