What is average credit card debt per US household? (2024)

What is average credit card debt per US household?

The average credit card balance is $6,501 as of the third quarter of 2023, per Experian. That's up from $5,910 in 2022. Based on data from the previous quarter, Gen X carries the highest average credit card balance, $8,870, while Gen Z carries the lowest average credit card balance, with $3,148.

How much credit card debt does the average family have?

The average credit card balance is $6,501 as of the third quarter of 2023, per Experian. That's up from $5,910 in 2022. Based on data from the previous quarter, Gen X carries the highest average credit card balance, $8,870, while Gen Z carries the lowest average credit card balance, with $3,148.

What is the average credit card debt per person in the US?

Average American Credit Card Debt

However, according to Transunion, this figure rose from $5,795 in January 2023 to $6,295 in January 2024. The average credit card interest rate on accounts with balances that assessed interest was 22.75% in November 2023, according to the Federal Reserve.

How many people have $50,000 in credit card debt?

Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year.

What is the average debt of a household in the US?

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

What is considered high credit card debt?

There are a couple ways credit card debt can damage your credit score: 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.

What percent of Americans are debt free?

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.

What is the average credit card debt by age?

What is the average credit card debt held by Gen Z?

The average credit card debt held by Gen Z is $2,854, according to Q3 2022 data from the credit bureau Experian. This is the lowest average for any adult generation, which makes sense considering that people in Gen Z (ages 11-26) have had the least amount of time to rack up credit card debt.

How much credit card debt does the average middle class American have?

The average American credit card debt is $6,501. Americans have an average credit utilization rate of 30%. Credit card interest rates have been rising and recently reached an average of 22.77%.

What is the average credit score in the United States?

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

What is the largest type of debt in the US?

Mortgage balances, the largest source of debt for most Americans, rose 5.9 percent between 2020 and 2021.

How many people are living 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.

What is considered a lot of debt?

Generally speaking, a good debt-to-income ratio is anything less than or equal to 36%. Meanwhile, any ratio above 43% is considered too high. The biggest piece of your DTI ratio pie is bound to be your monthly mortgage payment.

How much bad debt does the average American have?

The average American in 2023 carried $21,800 in personal debt (excluding mortgages), a whopping $8,000 less than what Northwestern Mutual recorded in 2019.

How much does the average person pay in debt?

Americans are tumbling deeper into debt, with the typical household paying $1,583 a month on various loans, a recent study found. That's a more than $300 increase from people's average monthly debt payment in 2020, according to LendingTree.

Is $20000 in credit card debt a lot?

“That's because the best balance transfer and personal loan terms are reserved for people with strong credit scores. $20,000 is a lot of credit card debt and it sounds like you're having trouble making progress,” says Rossman.

Do most Americans have credit card debt?

The average American household owes $7,951 in credit card debt a year, according to 2022 data from the Federal Reserve Bank of New York and the U.S. Census Bureau.

Is 5000 credit card debt a lot?

$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.

How many Americans live paycheck to paycheck?

A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.

How many Americans have more credit card debt than savings?

More than one-third of American adults – 36% – have more credit card debt than emergency savings, according to an annual survey by Bankrate, the personal finance site.

Which gender has more debt?

Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.

What is a prime credit score?

On the FICO credit score range, a prime credit score is between 660 and 719. Borrowers with prime credit scores tend to pose relatively little risk to lenders and creditors. With a prime credit score, you may qualify for more favorable loan or credit card terms, interest rates and reward programs.

Why do Americans have so much credit card debt?

Although inflation has moderated since it peaked in June 2022, Americans—particularly lower-income families—are relying more on credit cards to cope with the sticker shock. “They used credit card debt to supplement their incomes to maintain their purchasing power,” says Mark Zandi, chief economist at Moody's Analytics.

What percent of Americans have credit card debt?

If you look at all credit card accounts, the American Bankers Association data shows that 43% of accounts were active and carried a balance at some point in the third quarter of 2022, 34% of accounts were active but didn't carry a balance and 23% of accounts were dormant for the quarter.