If you have credit card debt, you're not alone. On average, Americans carry $6,194 in credit card debt, according to the 2019 Experian Consumer Credit Review.
The average credit card debt for 30 year olds is roughly $4,200, according to the Experian data report.
According to a 2020 Experian study, the average American carries $92,727 in consumer debt. Consumer debt includes a variety of personal credit accounts, such as credit cards, auto loans, mortgages, personal loans, and student loans.
The average debt for individual consumers dropped from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance declined in every state.
If your total balance is more than 30% of the total credit limit, you may be in too much debt. Some experts consider it best to keep credit utilization between 1% and 10%, while anything between 11% and 30% is typically considered good.
And yet, over half of Americans surveyed (53%) say that debt reduction is a top priority—while nearly a quarter (23%) say they have no debt. And that percentage may rise.
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.
According to the Federal Reserve, only 45% of U.S. cardholders pay their card balance every month. Here's a closer look at the card payment numbers from the Fed: 45% always pay their card balance in full each month.
Kevin O'Leary, an investor on “Shark Tank” and personal finance author, said in 2018 that the ideal age to be debt-free is 45. It's at this age, said O'Leary, that you enter the last half of your career and should therefore ramp up your retirement savings in order to ensure a comfortable life in your elderly years.
Average American credit card debt
How much credit card debt does the average American have? The average balance is $5,221 as of the third quarter of 2021, according to Experian. Although that's a large amount, it's a 1.8% decrease from 2020, and it's much lower than it was before COVID-19.
Total consumer debt in the U.S as of the first quarter of 2022 is $15.84 trillion. Auto and student loans doubled after the Great Recession. The average consumer debt sits at $92,727. Generation X carries the most consumer debt out of any generation, at $140,643 on average.
The average American has $90,460 in debt, according to a 2021 CNBC report. That included all types of consumer debt products, from credit cards to personal loans, mortgages and student debt. The average amount of debt by generation in 2020: Gen Z (ages 18 to 23): $16,043.
The average American's net worth: $121,760
The median net worth of Americans in 2019 was $121,760, according to the Federal Reserve. That's a $30,000 increase since 2010 but still below the median wealth recorded in 2007, 2004, and 2001 -- all before the 2008 recession. Data source: Federal Reserve (2020).
By age 30 your goal is to have an amount equal to half your salary stored in your retirement account. If you're making $60,000 in your 20s, strive for a $30,000 net worth by age 30. That milestone is possible through saving and investing.
A good annual income for a credit card is more than $39,000 per annum for a single individual or $63,000 per year for a household. Anything lower than that is below the median yearly earnings for Americans.
Depending on where you're starting from, It can take several years or more to build an 800 credit score. You need to have a few years of only positive payment history and a good mix of credit accounts showing you have experience managing different types of credit cards and loans.
About 21.8% of America has a credit score higher than 800 points. If you have a credit score of 800, it likely means that you manage debt well and never miss a loan payment. This makes you an ideal borrower and gives you access to more offers and lower interest rates.
25—34 year olds = $78,396
Credit cards often have high interest rates that can cause debt to snowball. Younger millennials carry an average debt of $78,396, primarily due to credit card balances, according to Experian.
While the average American has $90,460 in debt, this includes all types of consumer debt products, from credit cards to personal loans, mortgages and student debt.
So how much non-mortgage debt do Americans have? According to Northwestern Mutual's 2021 Planning & Progress Study, U.S. adults aged 18 and over who carry debt hold an average of $23,325 outside of their mortgages.
Many people would likely say $30,000 is a considerable amount of money. Paying off that much debt may feel overwhelming, but it is possible. With careful planning and calculated actions, you can slowly work toward paying off your debt.
About 52% of Americans owe $2,500 or less on their credit cards. If you're looking at $5,000 or higher, you should really get motivated to knock out that debt quickly.
Compared to 2021 standards, respondents to the 2020 survey described the threshold for wealth as being a net worth of $2.6 million.