Navicore Solutions Sees a Rising Need for Debt Management Services as Credit Card Usage Increases Despite Associated High Interest Rates

MANALAPAN, N.J., April 17, 2025 (GLOBE NEWSWIRE) -- Navicore Solutions, a leading nonprofit credit counseling organization, has found a significant increase in Americans seeking debt management assistance in

the first quarter of 2025. As credit card balances continue to increase despite soaring interest rates, Navicore offers more consumer education and support to consumers nationwide.

Americans now collectively owe a record $1.21 trillion on their credit cards, according to recent data from the Federal Reserve Bank of New York, with credit card balances jumping by $45 billion in the fourth quarter of 2024—a 7.3% increase from the previous year. This surge comes at a time when credit card interest rates average an astounding 23%, far exceeding rates on any other major type of loan or bond.

"Credit card interest rates are at historic highs, yet consumers continue to rely heavily on this expensive form of credit. The result can be a dangerous cycle of debt that's increasingly difficult for households to escape without assistance," said Diane Gray, Chief Operating Officer at Navicore.

The percentage of credit cardholders carrying debt from month to month has increased to 48%, up from 44% at the start of 2024, with 53% of those individuals having been in debt for at least a year. Even more concerning is that the average credit card balance per consumer has climbed to approximately $6,580, reflecting a 3.5% increase year over year.

"With annual percentage rates exceeding 20%, consumers making only minimum payments on the average credit card balance face an 18-year journey to debt freedom, accumulating a large amount of interest over that period," explained Gray. “This mathematical reality may be shocking to many consumers when they review their financial situations.”

Adding to these concerns, the share of credit card holders making only minimum payments reached 10.75% in the third quarter of 2024, the highest level recorded in the last 12 years. Simultaneously, delinquency rates have climbed, with 7.18% of balances transitioning to delinquency over the last year and the share of balances more than 30 days past due rising to 3.52%, up from 3.21% as reported by the Federal Reserve Bank of Philadelphia.

In response to these trends, Navicore Solutions has continued to provide quality counseling services, debt management programs and financial education initiatives. "Our debt management plans help consumers pay down their credit card debt, often at lower interest rates, typically reducing monthly their payments to a manageable level" said Gray, "but beyond immediate relief, we're focused on providing financial education and budgeting skills that empower consumers to break the cycle of debt dependence altogether."

About Navicore Solutions

Founded in 1991, Navicore Solutions is a national leader in the field of nonprofit financial counseling with a mission to strengthen the well-being of individuals and families through education, guidance, advocacy, and support.

Navicore counselors provide a wide range of services including credit counseling to consumers in need; education programs through workshops, courses and written material; debt management plan to provide relief for applicable consumers; student loan counseling for those struggling with student loan debt; and housing counseling services in the areas of rental, pre-purchase, default and reverse mortgage. The agency is an advocate of financial education helping communities achieve and maintain financial stability.