$1.23 Trillion in Credit Card Debt: Tracking Your Piece of the National Problem

I ran a Beancount query this morning to calculate my credit card debt, and the number staring back at me was uncomfortable: $8,247.

Then I looked up the national statistics and realized: I’m part of the $1.23 trillion problem.

According to the Federal Reserve, Americans now carry $1.233 trillion in credit card debt—the highest balance since tracking began in 1999. The average balance per cardholder is $6,523, with household averages reaching $11,019.

So my $8,247 is above the individual average but below the household average. Does that make it better or worse? I don’t know.

But here’s what I do know: Tracking my credit card debt in Beancount gives me clarity that most people don’t have. And that clarity is the first step to fixing the problem.

The National Credit Card Debt Crisis

Let me put my $8,247 in context with the national data:

The numbers are staggering:

  • Total US credit card debt: $1.233 trillion (Q3 2025)
  • Average per cardholder: $6,523
  • Average per household: $11,019
  • Average APR: 20.97% (Q4 2025)
  • Average APR for cards accruing interest: 22.30%

What’s driving it:
73% of credit card balances stem from emergency or day-to-day expenses—car repairs, medical bills, home repairs, routine living costs.

Translation: Most people aren’t racking up debt from luxury purchases. They’re using credit cards to survive.

How I Track Credit Card Debt in Beancount

Here’s my setup:

; Credit card liability accounts
open Liabilities:CreditCard:Chase
open Liabilities:CreditCard:Discover
open Liabilities:CreditCard:Amex

; Track interest separately
open Expenses:Interest:CreditCard

; Track debt reduction separately from normal payments
open Expenses:DebtReduction:CreditCard

Key insight: I track debt reduction separately from interest charges to see my actual progress.

My Monthly Credit Card Debt Snapshot

First day of every month, I run this query:

SELECT
  account,
  SUM(position) as balance
FROM CLOSE
WHERE account ~ 'Liabilities:CreditCard'
GROUP BY account
ORDER BY balance DESC

Output (February 2026):

Account                        Balance
Liabilities:CreditCard:Chase   $4,892
Liabilities:CreditCard:Discover $2,140
Liabilities:CreditCard:Amex    $1,215
────────────────────────────────────
Total                          $8,247

Then I add a monthly note with context:

2026-02-01 note Liabilities:CreditCard \"
=== CREDIT CARD DEBT SNAPSHOT (Feb 2026) ===

Total balance: $8,247
National avg (individual): $6,523
My position: +26% above average (NOT GOOD)

Monthly minimum payments: $247
Monthly interest charges (est): $159 (@23% APR avg)
Monthly principal reduction (if paying minimums only): $88

Time to payoff (minimum payments only): 94 months (~8 years!)
Total interest paid (minimum payments): $14,981

My actual payment plan:
  - Chase: $300/month
  - Discover: $150/month
  - Amex: $100/month
  Total: $550/month

Estimated payoff timeline: 18 months
Estimated interest: $1,247

Status: ABOVE TARGET (want to be debt-free by August 2027)
\"

This monthly note keeps the full picture visible:

  • Where I stand vs national averages
  • Cost of minimum payments (devastating)
  • My actual payment plan
  • Progress toward debt freedom

Tracking Interest Charges vs Principal Reduction

Every month, I categorize my credit card payments:

; Chase payment breakdown
2026-02-15 * "Chase Credit Card" "Monthly payment"
  Liabilities:CreditCard:Chase      300.00 USD
  Expenses:Interest:CreditCard      -94.20 USD  ; Interest charged
  Assets:Checking                  -300.00 USD

; Record the principal reduction separately for tracking
2026-02-15 * "Chase Credit Card" "Principal reduction"
  Expenses:DebtReduction:CreditCard  205.80 USD  ; $300 - $94.20 interest
  Liabilities:CreditCard:Chase      -205.80 USD

Wait, that doesn’t balance! Let me fix that:

Actually, the better way to track this:

; Record credit card payment (all goes to liability)
2026-02-15 * "Chase Credit Card" "Monthly payment"
  Liabilities:CreditCard:Chase       300.00 USD
  Assets:Checking                   -300.00 USD

; Record interest charge (increases liability)
2026-02-15 * "Chase Credit Card" "Interest charged on balance"
  Expenses:Interest:CreditCard       94.20 USD
  Liabilities:CreditCard:Chase      -94.20 USD
  note: "Effective principal reduction this month: $205.80"

Now I can query:

  • Total paid: All payments to Liabilities:CreditCard
  • Total interest: Expenses:Interest:CreditCard
  • Net debt reduction: Payments minus interest charges

The “Debt Payoff Progress” Query

I run this quarterly to track progress:

SELECT
  QUARTER(date) as quarter,
  SUM(CASE WHEN account ~ 'Liabilities:CreditCard' AND position > 0 THEN position ELSE 0 END) as total_paid,
  SUM(CASE WHEN account = 'Expenses:Interest:CreditCard' THEN position ELSE 0 END) as total_interest,
  (total_paid - total_interest) as principal_reduction,
  (total_interest / total_paid) * 100 as interest_rate_pct
FROM CLOSE
WHERE date >= 2026-01-01
GROUP BY QUARTER(date)
ORDER BY quarter

Q1 2026 results:

Quarter  Total Paid  Interest  Principal  Interest %
Q1 2026  $1,650      $412      $1,238     25.0%

Translation: Of the $1,650 I paid toward credit cards in Q1, $412 went to interest (25%). Only $1,238 actually reduced my debt.

This is brutal to see, but it’s necessary.

Comparing My Debt to National Averages

I track my position relative to national benchmarks:

2026-02-01 note Liabilities:CreditCard \"
=== NATIONAL COMPARISON ===

My balance: $8,247
National avg (individual): $6,523
Difference: +$1,724 (+26% above average)

My interest rate (weighted avg): 23.1%
National avg APR: 20.97%
Difference: +2.13 percentage points (WORSE)

My monthly payment: $550
My balance: $8,247
Payment ratio: 6.7% of balance

National context:
  - I'm in the top 40% of credit card debt holders (bad)
  - My APR is higher than average (worse)
  - My payment rate is better than average (good)

Goal: Get below national average by Q4 2026
\"

Seeing this comparison monthly keeps me motivated to pay down faster.

The “True Cost of Debt” Calculator

I built a note to calculate what my debt is really costing me:

2026-02-01 note Expenses:Interest:CreditCard \"
=== TRUE COST OF $8,247 DEBT ===

Option 1: Minimum payments only ($247/month)
  Monthly payment: $247
  Interest charges: $159/month (avg)
  Principal reduction: $88/month
  Time to payoff: 94 months (~8 years)
  Total paid: $23,228
  Total interest: $14,981
  COST: $14,981 wasted on interest

Option 2: My plan ($550/month)
  Monthly payment: $550
  Time to payoff: 18 months
  Total paid: $9,494
  Total interest: $1,247
  COST: $1,247 in interest

Option 3: Aggressive payoff ($1,000/month)
  Monthly payment: $1,000
  Time to payoff: 9 months
  Total paid: $8,840
  Total interest: $593
  COST: $593 in interest

Savings from my plan vs minimum:
  Interest saved: $13,734
  Time saved: 76 months (6.3 years)

This is why I track this obsessively.
\"

Seeing $14,981 in interest if I only pay minimums is terrifying. And motivating.

What I’m Doing About It

1. Debt avalanche method (highest APR first)

My cards ranked by APR:

  • Chase: 24.99% APR → $300/month
  • Discover: 21.49% APR → $150/month (after Chase is paid off)
  • Amex: 19.99% APR → $100/month (after Discover is paid off)

2. No new charges (frozen cards)

I physically froze my credit cards in a block of ice. Sounds stupid, but it works.

New expenses go on debit only. If I can’t afford it in cash, I can’t afford it.

3. Monthly progress tracking

Every month, I calculate:

  • Total debt reduction (principal paid)
  • Interest charges
  • Months remaining to debt freedom
  • Progress toward goal

4. Celebrating milestones

  • $8,000 → $7,000: Dinner out ($30 budget)
  • $7,000 → $6,000: National average! (milestone photo)
  • $6,000 → $5,000: Halfway there (buy a book I’ve wanted)
  • $5,000 → $0: DEBT FREE (real celebration)

Tracking the wins in Beancount keeps me going.

The National Problem

Here’s what bothers me about the $1.23 trillion number:

Most people don’t track their debt the way Beancount users do. They see:

  • A “balance” on their statement (but not the breakdown)
  • A “minimum payment” (but not the interest vs principal split)
  • An “APR” (but not the total cost over time)

Beancount users have an unfair advantage: We can see the full picture. We can calculate true cost. We can track progress.

But 73% of that $1.23 trillion is from emergencies and necessities, not frivolous spending. People aren’t choosing debt—they’re surviving.

My $8,247 includes:

  • $2,400 medical bills (ER visit, no insurance at the time)
  • $1,800 car repairs (transmission)
  • $1,200 moving expenses (job relocation)
  • $2,847 in “life happened” expenses

Only ~$1,000 was truly discretionary spending I regret.

Questions for the Community

  1. How do you track credit card debt in Beancount?

    • Separate accounts per card?
    • How do you categorize interest vs principal?
  2. Do you compare yourself to national averages?

    • Does it help or hurt to know where you stand?
  3. What’s your payoff strategy?

    • Debt avalanche (highest APR first)?
    • Debt snowball (smallest balance first)?
    • Hybrid approach?
  4. How do you track interest charges?

    • Separate expense account?
    • Metadata tags?
    • Notes?
  5. Have you paid off credit card debt using Beancount tracking?

    • How long did it take?
    • What motivated you to stay disciplined?

I’m $8,247 into the $1.23 trillion national problem. But I have a plan, and I’m tracking progress.

By August 2027, I’ll be debt-free.

How are you tracking your piece of the problem?


Sources:

This post hits home. I paid off $14,200 in credit card debt 3 years ago, and Beancount tracking was absolutely critical to staying disciplined.

Your system is solid. Let me share what worked for me.

My Credit Card Debt Journey

Starting point (January 2022):

  • Total debt: $14,200
  • Cards: 4 different cards
  • Average APR: 22.8%
  • Monthly minimum: $426
  • Feeling: Hopeless

End point (October 2024):

  • Total debt: $0
  • Time to payoff: 34 months (~2.8 years)
  • Total interest paid: $2,847
  • Feeling: Free

How I did it: Beancount tracking + debt avalanche + side income.

The Tracking System That Worked

I tracked three key metrics weekly (yes, weekly):

1. Total Debt Remaining

; Every Sunday, snapshot total debt
2022-01-09 note Liabilities:CreditCard "Total debt: $14,200 | Target: $0 | Progress: 0%"
2022-01-16 note Liabilities:CreditCard "Total debt: $13,987 | Target: $0 | Progress: 1.5%"
2022-01-23 note Liabilities:CreditCard "Total debt: $13,764 | Target: $0 | Progress: 3.1%"

Why weekly? Because seeing progress every 7 days kept me motivated. Monthly felt too slow.

2. Interest vs Principal Breakdown

Every month, I calculated the “waste ratio”:

2022-01-31 note Expenses:Interest:CreditCard \"
=== JANUARY 2022 INTEREST WASTE ===

Total paid: $850
Interest charged: $267 (31.4% of payment)
Principal reduction: $583 (68.6% of payment)

Waste ratio: 31.4%
Goal: Get below 20% by June

If I had paid minimums only ($426):
  Interest: $267
  Principal: $159
  Waste ratio: 62.7%

By paying $850 instead, I'm reducing principal 3.7x faster.
\"

Seeing that 31.4% of my payment was “waste” (interest) motivated me to pay more.

3. Debt-Free Countdown

I had a running note showing “months until debt-free”:

2022-02-01 note Liabilities:CreditCard \"
Current payment rate: $850/month
Current balance: $13,764
Interest rate (weighted avg): 22.8%

Estimated payoff timeline:
  At $850/month: 19 months (Aug 2023)
  At $1,000/month: 15 months (Apr 2023)
  At $1,500/month: 11 months (Dec 2022)

My goal: Debt-free by Dec 2023 (24 months)
Current pace: AHEAD OF SCHEDULE (19 months)
\"

Every month, the countdown got shorter. Watching that number drop was addictive.

The Debt Avalanche Strategy

You mentioned avalanche (highest APR first). Here’s exactly how I did it:

My cards ranked by APR:

  1. Capital One: $4,200 @ 26.99% → $600/month
  2. Chase: $3,800 @ 24.49% → minimum only
  3. Discover: $3,600 @ 21.99% → minimum only
  4. Citi: $2,600 @ 18.99% → minimum only

Strategy:

  • Pay minimums on all cards
  • Throw every extra dollar at Capital One (highest APR)
  • Once Capital One = $0, roll that $600 to Chase
  • Repeat until all cards = $0

Timeline:

  • Month 1-8: Kill Capital One ($4,200 paid off)
  • Month 9-15: Kill Chase ($3,800 paid off)
  • Month 16-23: Kill Discover ($3,600 paid off)
  • Month 24-34: Kill Citi ($2,600 paid off)

Result: Paid off in 34 months (10 months longer than planned, but life happened).

The “Interest Saved” Metric

I tracked how much interest I avoided by paying aggressively:

2024-10-15 note Liabilities:CreditCard \"
=== DEBT PAYOFF COMPLETE ===

Final stats:
  Starting debt: $14,200
  Total paid: $17,047
  Total interest: $2,847
  Time: 34 months

Comparison scenarios:

  Scenario A: Minimum payments only
    Monthly payment: $426
    Time to payoff: 127 months (~10.5 years)
    Total interest: $39,902
    COST: $39,902 in interest

  Scenario B: My plan (avalanche @ $850/month)
    Monthly payment: $850
    Time to payoff: 34 months (~2.8 years)
    Total interest: $2,847
    COST: $2,847 in interest

  Savings:
    Interest avoided: $37,055
    Time saved: 93 months (7.75 years)

This is the value of Beancount tracking.
\"

I saved $37,055 in interest by tracking aggressively and paying more than minimums.

Let that sink in.

What Kept Me Motivated

1. Visual progress tracking

I created a chart (by hand!) showing debt decreasing over time:

Month  Debt Remaining  % Complete
Jan    $14,200         0%
Feb    $13,764         3%
Mar    $13,298         6%
Apr    $12,804         10%
...
Oct    $0              100%

Seeing that percentage climb every month was powerful.

2. Celebrating milestones

I built rewards into the plan:

  • $14,000 → $12,000: Buy a book I wanted ($15)
  • $12,000 → $10,000: Dinner out with partner ($40)
  • $10,000 → $8,000: Upgrade headphones ($60)
  • $8,000 → $6,000: National average! (photo for motivation)
  • $6,000 → $0: Weekend trip ($200 budget)

These weren’t huge expenses, but they acknowledged progress.

3. Side income tracking

I picked up freelance work specifically for debt payoff:

; Income tagged for debt payoff
2022-03-15 * "Freelance Client" "Website project" #debt-payoff
  Assets:Checking                500.00 USD
  Income:Freelance:Web          -500.00 USD

2022-03-16 * "Extra Payment" "Freelance earnings → debt"
  Liabilities:CreditCard:CapitalOne  500.00 USD
  Assets:Checking                   -500.00 USD
  note: "Freelance project → direct to debt"

Every freelance dollar went straight to debt. Tagging it #debt-payoff let me track total extra income applied.

Over 34 months: $8,200 in freelance income, 100% to debt.

Your Questions Answered

1. How do I track credit card debt?

Yes, separate account per card. This lets me:

  • See which card is highest priority
  • Track payoff timeline per card
  • Calculate weighted average APR

2. Do I compare to national averages?

I did, but it was a double-edged sword:

  • Below average = motivation (“I’m better than most!”)
  • Above average = shame (“I’m failing!”)

I stopped comparing after 6 months. Past me became my only comparison.

3. Payoff strategy?

Debt avalanche (highest APR first). Mathematically optimal. Saved me ~$4,000 vs snowball approach.

4. How do I track interest?

Separate account (Expenses:Interest:CreditCard) with monthly summary notes showing waste ratio.

5. How long did payoff take?

34 months. Planned for 24, but life happened (car repair, medical bill, etc.). Flexibility matters.

The Psychological Battle

Here’s what no one tells you about debt payoff:

It’s boring.

Month 15 felt exactly like month 3. Same grind. Same sacrifices. Same slow progress.

The only thing that kept me going was Beancount tracking showing the trend.

Even when I felt stuck, the ledger showed:

  • Debt decreasing
  • Interest charges shrinking
  • Principal reduction accelerating

The numbers don’t lie. Even when motivation disappears, the data keeps you honest.

Advice for Your $8,247 Journey

1. Your 18-month timeline is ambitious but achievable

You’re paying $550/month on $8,247 debt.

Reality check:

  • Month 1 debt: $8,247
  • Interest @ 23%: ~$158/month average
  • Principal reduction: $392/month ($550 - $158)
  • Actual payoff: ~21 months (not 18)

Don’t beat yourself up if it takes 21 months instead of 18. You’re still crushing it.

2. Track interest waste ratio monthly

Your note showed 25% interest in Q1. Aim to get that below 20% by Q3 (as debt shrinks, interest shrinks faster).

3. Consider side income

You didn’t mention side income, but even $200/month extra would cut your timeline by 5-6 months.

Freelance, gig work, sell stuff—anything that goes 100% to debt.

4. Don’t pause retirement completely

I see you’re keeping retirement contributions. Good. I paused mine for 2 years and regret it.

Keep at least the employer match. Future you will thank you.

The $1.23 Trillion Context

Your point about 73% being emergencies is critical.

My $14,200 breakdown:

  • Medical: $4,800 (ER visit + follow-up, no insurance)
  • Car: $3,200 (major repairs)
  • Moving: $2,400 (job relocation)
  • Unemployment: $2,200 (3-month gap in 2021)
  • Discretionary: $1,600 (regrettable purchases)

Only 11% was “frivolous spending.” The rest was survival.

Most people with credit card debt aren’t irresponsible—they’re unlucky.

You’ve Got This

Your tracking system is excellent. Your plan is solid. Your timeline is realistic.

$8,247 → $0 in 18-21 months is absolutely achievable.

Stay disciplined. Track weekly. Celebrate milestones. Don’t compare to others—only to past you.

By August 2027, you’ll post the “I’m debt-free” update, and we’ll all celebrate with you.

Keep posting progress updates. This community needs more debt payoff success stories.

You’re going to make it.

Your tracking system is solid, but I want to add a data-driven dimension you’re missing: effective interest rate analysis.

Most people don’t realize their “23% APR” isn’t actually costing them 23% when they’re making above-minimum payments.

Let me explain.

The “Effective Interest Rate” Metric

Your $8,247 debt at 23% APR paying $550/month isn’t really costing you 23% because you’re paying it down faster than the rate compounds.

Here’s how to calculate effective interest rate (EIR):

EIR = (Total Interest Paid) / (Average Daily Balance × Time Period)

For your situation:

  • Total debt: $8,247
  • Monthly payment: $550
  • Payoff timeline: ~18 months
  • Total interest paid (estimated): $1,247
Average balance over 18 months: ~$4,123 ($8,247 / 2)
Time period: 1.5 years
Total interest: $1,247

EIR = $1,247 / ($4,123 × 1.5) = 20.1%

Your effective interest rate is 20.1%, not 23%.

Why this matters: You’re already beating your quoted APR by paying aggressively. Tracking this shows your payment strategy is working.

My Beancount “Debt Dashboard” Query

I run this monthly to track all debt metrics in one place:

-- Credit card debt dashboard
WITH debt_balances AS (
  SELECT
    account,
    SUM(position) as balance
  FROM CLOSE
  WHERE account ~ 'Liabilities:CreditCard'
  GROUP BY account
),
interest_charges AS (
  SELECT
    MONTH(date) as month,
    SUM(position) as interest
  FROM CLOSE
  WHERE account = 'Expenses:Interest:CreditCard'
    AND date >= DATE_SUB(CURRENT_DATE(), INTERVAL 6 MONTHS)
  GROUP BY MONTH(date)
),
payments AS (
  SELECT
    MONTH(date) as month,
    SUM(ABS(position)) as payment
  FROM CLOSE
  WHERE account ~ 'Liabilities:CreditCard'
    AND position > 0
    AND date >= DATE_SUB(CURRENT_DATE(), INTERVAL 6 MONTHS)
  GROUP BY MONTH(date)
)
SELECT
  debt_balances.account,
  debt_balances.balance,
  COALESCE(interest_charges.interest, 0) as monthly_interest,
  COALESCE(payments.payment, 0) as monthly_payment,
  (payments.payment - interest_charges.interest) as principal_reduction
FROM debt_balances
LEFT JOIN interest_charges ON 1=1
LEFT JOIN payments ON 1=1

This gives me:

  • Current balance per card
  • Monthly interest charges
  • Monthly payments
  • Net principal reduction

All in one query.

The “Debt Payoff Acceleration” Metric

I track how much faster I’m paying down debt compared to minimum payments:

2026-02-01 note Liabilities:CreditCard \"
=== DEBT PAYOFF ACCELERATION ===

Scenario A: Minimum payments ($247/month)
  Payoff timeline: 94 months
  Total interest: $14,981

Scenario B: My plan ($550/month)
  Payoff timeline: 18 months
  Total interest: $1,247

Acceleration factor: 5.2x faster (94 / 18)
Interest savings: $13,734 ($14,981 - $1,247)
Time savings: 76 months (6.3 years)

Every $100 extra per month saves:
  Interest: ~$2,500
  Time: ~14 months

This is why I'm paying $550 instead of $247.
\"

Key insight: Every extra $100/month saves you ~$2,500 in interest and ~14 months of time.

Quantifying this keeps me motivated to find extra income.

Tracking “Interest as % of Payment” Over Time

I track the “waste ratio” (interest as % of payment) monthly to see progress:

2026-01-31 note Expenses:Interest:CreditCard \"
Jan 2026 waste ratio: 28.7% ($158 interest / $550 payment)
Target: < 20% by June 2026
\"

2026-02-28 note Expenses:Interest:CreditCard \"
Feb 2026 waste ratio: 26.4% ($145 interest / $550 payment)
Improvement: -2.3 percentage points (good!)
\"

As debt decreases, this ratio improves automatically. Tracking it monthly shows compounding progress.

The “True APR” Calculator

Most people don’t realize their credit card’s “23% APR” is actually calculated daily, which compounds to 25.8% effective annual rate.

Here’s the math:

Daily rate = 23% / 365 = 0.063% per day
Effective annual rate = (1 + 0.00063)^365 - 1 = 25.8%

So your “23% APR” card is really costing you 25.8% when compounded daily.

I track this in Beancount:

2026-02-01 note Liabilities:CreditCard:Chase \"
Quoted APR: 24.99%
Daily rate: 0.0685% (24.99% / 365)
Effective annual rate: 28.4% ((1.000685)^365 - 1)

This is why the interest charges feel higher than expected.
\"

Understanding this makes me way more motivated to pay off high-APR debt.

Comparing Credit Cards: Weighted Average APR

You have 3 cards at different APRs. Your weighted average APR is:

Chase: $4,892 @ 24.99% → weight = 59.3%
Discover: $2,140 @ 21.49% → weight = 26.0%
Amex: $1,215 @ 19.99% → weight = 14.7%

Weighted avg = (0.593 × 24.99%) + (0.260 × 21.49%) + (0.147 × 19.99%)
             = 14.82% + 5.59% + 2.94%
             = 23.35%

Your effective portfolio APR is 23.35%.

I track this monthly to see if my avalanche strategy is working (it should decrease as I pay off highest APR cards first):

2026-01-01 note Liabilities:CreditCard \"Weighted avg APR: 23.35%\"
2026-02-01 note Liabilities:CreditCard \"Weighted avg APR: 23.12%\" ; improved!

The “National Average” Comparison (Data-Driven)

You mentioned being 26% above the national average ($8,247 vs $6,523).

But here’s the thing: National averages are misleading because they include people with $0 balances.

Better comparison: Among people with debt, the average is $11,019 per household.

Your $8,247 is 25% below the household average.

I track this context:

2026-02-01 note Liabilities:CreditCard \"
My debt: $8,247
National avg (all cardholders): $6,523 (+26% vs me)
National avg (households with debt): $11,019 (-25% vs me)

Context: I'm above the 'everyone' average but below the 'people with debt' average.

This means I'm not in the worst quartile—I'm in the middle.

Goal: Get below BOTH averages by Q4 2026.
\"

Framing matters. Above one average, below another is way less demoralizing than just “above average.”

Advanced Query: “Months Until Debt-Free” Calculator

I built a dynamic query that recalculates payoff timeline monthly based on actual payment rate:

-- Calculate estimated payoff date
WITH current_debt AS (
  SELECT SUM(ABS(position)) as total_debt
  FROM CLOSE
  WHERE account ~ 'Liabilities:CreditCard'
),
recent_payments AS (
  SELECT AVG(ABS(position)) as avg_payment
  FROM CLOSE
  WHERE account ~ 'Liabilities:CreditCard'
    AND position > 0
    AND date >= DATE_SUB(CURRENT_DATE(), INTERVAL 3 MONTHS)
),
recent_interest AS (
  SELECT AVG(position) as avg_interest
  FROM CLOSE
  WHERE account = 'Expenses:Interest:CreditCard'
    AND date >= DATE_SUB(CURRENT_DATE(), INTERVAL 3 MONTHS)
)
SELECT
  current_debt.total_debt,
  recent_payments.avg_payment as avg_monthly_payment,
  recent_interest.avg_interest as avg_monthly_interest,
  (recent_payments.avg_payment - recent_interest.avg_interest) as avg_principal_reduction,
  CEIL(current_debt.total_debt / (recent_payments.avg_payment - recent_interest.avg_interest)) as months_until_debt_free
FROM current_debt, recent_payments, recent_interest

Output (for your situation):

Total Debt: $8,247
Avg Payment: $550
Avg Interest: $158
Avg Principal Reduction: $392
Months Until Debt-Free: 21 months

This auto-updates every month based on actual data, not projections.

Your Questions (Data-Driven Answers)

1. How do I track credit card debt?

Yes, separate account per card + one aggregated “all debt” query + monthly dashboard.

2. Do I compare to national averages?

Yes, but I use multiple benchmarks:

  • All cardholders: $6,523
  • Households with debt: $11,019
  • People in my age/income bracket: varies

Context matters.

3. Payoff strategy?

Debt avalanche (highest APR first) saves ~$4,000 vs snowball for typical debt profiles. I’ve modeled both.

4. How do I track interest?

Separate expense account + monthly “waste ratio” notes + effective interest rate calculation.

5. Debt payoff experience?

I paid off $9,200 in 14 months using avalanche + side income. Saved ~$2,100 vs minimum payments.

One More Thing: The “Opportunity Cost” Metric

Your $8,247 in debt at 23% APR is costing you $1,897/year in interest (at current balance).

But here’s the opportunity cost you’re not tracking:

If you paid off the debt and invested that $550/month instead:

  • At 7% annual return (S&P 500 avg)
  • Over 18 months (your payoff timeline)
  • Future value: $10,890

Versus:

  • Debt payoff: $8,247 principal + $1,247 interest = $9,494
  • Difference: $1,396

But the debt payoff “return” is guaranteed 23%, while stock market is risky 7%.

Risk-adjusted, paying off 23% debt is equivalent to earning ~15% guaranteed return in the market.

I track this in a note:

2026-02-01 note Liabilities:CreditCard \"
Opportunity cost analysis:

Paying off debt = 23% guaranteed return (risk-adjusted ~15%)
Investing in S&P 500 = ~7% expected return (risky)

Conclusion: Debt payoff is BETTER than investing.

This is why I'm prioritizing debt over brokerage contributions.
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Bottom Line

Your tracking system is excellent. Your strategy is sound.

Add these metrics for next-level visibility:

  1. Effective interest rate (real cost vs quoted APR)
  2. Waste ratio trend (interest % of payment over time)
  3. Weighted average APR (portfolio-level cost)
  4. Dynamic payoff calculator (auto-updating timeline)
  5. Opportunity cost (debt payoff vs investing ROI)

Your $8,247 debt is absolutely manageable with your $550/month plan.

Keep tracking. Keep paying. You’ll be debt-free in ~21 months.

The numbers don’t lie. You’ve got this.