At the close of 2019, the average household had a credit card debt of $7,499. During the first quarter of 2021, it dropped to $6,209. In 2022, credit card debt rose again to $7,951 and has increased linearly. In 2023, it reached $8,599 — $75 shy of the 2024 average.
According to the SCF data, 46% of American households held credit card debt in 2022, and while credit card debt accounted for only about 2% of overall household debt, its interest rates tend to be higher than those of other forms of consumer debt, making it relatively expensive.
45.4% of American households do not carry debt on their credit cards at all. The average debt-to-credit-limit ratio usually hovers between 5% and 10%. In general, most households are not maxed out -- not even close.
That's a record-high percentage — the highest (tied with 2023) since Bankrate began asking the question in 2011. Additionally, 54 percent of U.S. adults have more in their emergency fund or savings, and 10 percent have no credit card debt and no savings.
Having no credit card debt isn't bad for your credit scores, but you do need to maintain open and active credit accounts to have the best scores. By using your credit cards and paying the balances off monthly (so that you carry no debt), you could achieve an excellent credit score.
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
$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.
Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.
It's a red flag for budgets. Though incomes are up, Americans are putting more on plastic and stretching to pay on time, reinforcing the precarious nature of cash flow.
Being debt-free is a financial milestone we often hear about people striving for. Without debt, you can focus on building more savings, investing those extra funds and just simply having more peace of mind about your finances.
Gen X and Gen Z have the highest and lowest credit card debt, respectively. Here's how to pay it off.
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.
If your result is less than 36%, your debt load is affordable, according to NerdWallet. If it's between 36% and 50%, consider taking action, such as consulting a nonprofit credit counseling service, to reduce your debt. 50% or more is “high risk,” NerdWallet says and suggests getting advice from a bankruptcy attorney.
Average American Debt by Age
Here's a look at how much nonmortgage debt Americans have by age group, and the average non-mortgage per capita debt for each group: 18-29-year-olds: $69 billion total, $12,871 average. 30-39-year-olds: $1.17 trillion, $26,532 average.
In the first quarter of 2023, the Federal Reserve Bank of New York estimated total credit card debt for all Americans was $986 billion. Alaska residents carry the highest credit card debt, while residents of Iowa have the lowest per person.
"Shark Tank" investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
According to Experian, average total consumer household debt in 2023 is $104,215. That's up 11% from 2020, when average total consumer debt was $92,727.
Among Gen Zers living in the 100 largest metropolitan areas, the median percentage with nonmortgage debt is just over 97 percent, the analysis found.
Try to prevent a situation where your monthly credit card debt payments are greater than 10% of your average monthly income.
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
In a recent NerdWallet survey, 57% of Americans said they were living paycheck to paycheck.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.