For the first time since 2021, debit-card spending is growing faster than credit-card spending. In the first half of 2025, debit purchases rose by 6.57%, while credit purchases grew by 5.65% (1). It’s a small gap, but it marks a big change. For years, credit cards have been the go-to for growth. So why are people swiping debit more often now? And what does this shift say about how Americans feel about money in today’s economy?
Why It Matters
1. Avoiding More Debt
Credit-card interest rates are high, and many households are already carrying balances. Add in the return of student-loan payments, and it’s no surprise that some consumers prefer debit, which limits spending to what’s already in the bank (1).
2. Everyday Spending Habits
Debit cards are easy to use with digital wallets like Apple Pay and Google Pay. Younger generations in particular are leaning toward debit for groceries, gas, and other daily needs (2).
3. The Trade-Off
Credit cards still shine when it comes to travel, online shopping, and rewards programs. Cashback, airline miles, and stronger fraud protection keep them in the game. But debit’s faster growth suggests that, for now, many Americans value control over perks (2).
The Big Picture
This is more than a spending statistic—it’s a glimpse into changing financial behavior. Are people becoming more cautious about borrowing? Or will the pull of rewards eventually bring them back to credit?
Either way, the balance between debit and credit shows us something bigger: consumers are re-thinking how they manage everyday money in an uncertain economy.
If you’d like to talk more about how these shifts connect to your own financial picture, I’d be happy to schedule a complimentary conversation.
Sources:
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(1) “American Credit Card Habits Undergo Major Shift as Economic Pressures Mount.” IntelliPay Digital Payment Trends, 20 Aug. 2025, https://intellipay.com/habitsshift/
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(2) “Debit Over Credit: Why Spending Habits Are Shifting in 2025.” HIFI Agency, 25 Mar. 2025, https://hifiagency.com/debit-over-credit-why-spending-habits-are-shifting-in-2025/
This information is being provided only as a general source of information and is not intended to be the primary basis for financial decisions. It should not be construed as advice designed to meet the particular needs of an individual situation. Please seek the guidance of a financial professional regarding your particular financial concerns. Consult with your tax advisor or attorney regarding specific tax issues.
