What is the average credit card debt in the US?
Based on data from the Federal Reserve Bank of New York and the U.S. Census Bureau (based on 2022 and 2021 data respectively), it can be calculated that each American household carries an average of $7,951 in credit card debt in a year.
Credit card debt in America by the numbers
That represents a 4.6% increase in a single quarter, with cardholders shouldering thirteen-figure debt at $1.03 trillion for the first time. In short, that amounts to an average balance of $5,733 per cardholder.
One in five (22%) have at least $10,000 to $20,000 worth of credit card debt. Of those, just over 5% have more than $30,000.
How much credit card debt does the average person have? The average American has a credit card balance of $6,501, an all-time high, according to Experian. That's an increase from $5,910 in 2022 and $5,221 in 2021. Inflation and higher interest rates have led many consumers to put more on their credit cards.
In general, you never want your minimum credit card payments to exceed 10 percent of your net income. Net income is the amount of income you take home after taxes and other deductions.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
| Age Group | Median Credit Card Debt | Average Credit Card Debt |
|---|---|---|
| 35-44 | $2,600 | $6,000 |
| 45-54 | $3,200 | $7,700 |
| 55-64 | $3,000 | $6,900 |
| 65-74 | $2,900 | $7,000 |
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
Fewer than one quarter of American households live debt-free. Learning ways to tackle debt can help you get a handle on your finances.
The average American owed $103,358 in consumer debt in the second quarter of 2023, the latest data available, according to credit bureau Experian.
Do most Americans live off credit cards?
Nearly Half of Americans Need Credit Cards To Cover Essential Living Expenses. The survey found that 48% of Americans depend on credit cards to cover essential living expenses. This is more common among younger generations: 59% of millennials use credit cards for living expenses.
In terms of savings accounts specifically, you'll likely find different estimates from different sources. The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
What bank is the biggest credit card issuer? In 2021, Chase was the overall biggest credit card issuer in the United States. It reported the highest total in outstandings, purchase volume, purchase transactions and cardholders.
Our $1.13 trillion in credit card debt is shattering lives. Everyday borrowers share how they're navigating the uniquely American debt machine.
Personal debt can be considered to be unmanageable when the level of required repayments cannot be met through normal income streams. This would usually occur over a sustained period of time, causing overall debt levels to increase to a level beyond which somebody is able to pay.
High balances: A major factor in your credit score is your credit utilization ratio (your credit card balances divided by their credit limits). Once this number gets above about 30%, it's bad for your credit.
Living on credit cards can't last forever, because eventually you'll reach the end of your credit line. Consider it a stop-gap measure, not a permanent plan. “In a lot of cases, you won't know how long your emergency will last,” says Nitzsche. “It could be a few months, it could be a year.
In 2022, 23 percent of Americans had no emergency savings. Because building savings takes time, McBride recommends people automate contributing to their savings accounts as much as possible.
Men have 20% more personal loan debt than women. Men have 16.3% more auto loan debt than women. Men have 9.7% more mortgage debt than women. Women have 2.7% more student loan debt than men.
Prime (credit scores of 660-719) Super-prime (credit scores of 720 or above)
What age has the most credit card debt?
But when you break it down by age, most carry more than that. Those between the ages of 40 and 49 hold an average of about $7,600 in credit card debt — the highest of any age bracket, per TransUnion data provided to CNBC Make It.
49 percent of credit card holders are carrying a credit card balance from month to month — an increase from 39 percent in 2021. Generation X leads the pack, with 55 percent saying they carry a credit card balance, followed by millennials at 51 percent, Gen Zers at 48 percent and baby boomers at 44 percent.
It will take 47 months to pay off $50,000 with payments of $1,500 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
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