The average credit card holder in the U.S. had $5,668 in credit card debt in Q2 2021 — that's 1% higher than Q1 2021's $5,611 average. From the first Q1 2020 to Q2 2021, the average credit card debt per cardholder decreased by $766 or 12%. The average cardholder had $6,434 in Q1 2020.
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.
Lots of people have credit card debt, and the average balance in the U.S. is $6,194. 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. The sooner you do, the less money you'll lose to interest.
In total, Americans paid down $110 billion in credit card debt since the first quarter of 2020, an average of $2,049 per household. Mortgages fuel total debt. The average American holds $53,897 in personal debt, much of it tied up in mortgages. If mortgages are excluded, the average debt would drop to $16,720.
The average credit card debt for 30 year olds is roughly $4,200. Taken as a larger group, people under 35 have an average credit card debt of $3,660.
A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.
Credit Card Debt Highest Among Consumers in Their Early 50s
Overall, 51-year-old consumers in the U.S. have the highest average credit card balance of all, carrying an average of $8,658, according to Q2 2019 Experian data.
But ideally you should never spend more than 10% of your take-home pay towards credit card debt. ... So, take a look at your budget and bank statements and calculate how much money you're spending monthly to pay down debt. If that amount is greater than 10%, you might have a problem.
Even though household net worth is on the rise in America (at $141 trillion in the summer of 2021)—so is debt. The total personal debt in the U.S. is at an all-time high of $14.96 trillion. The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt.
The average monthly credit card bill is a minimum payment of $110.50, based on the average American credit card balance of $5,525 and the average minimum payment percentage of 2%.
Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.
Yes, it is absolutely possible to buy a house with credit card debt. And by lowering your debt-to-income ratio before you apply for a loan, you may qualify for a better interest rate, too.
Federal Student Loan Debt by Age
Federal debt among 24-and-under borrowers has declined 3.6% since 2017. Federal borrowers aged 25 to 34 owe an average debt of $33,570. Debt among 25- to 34-year-olds has increased 6.1% since 2017. 35- to 49-year-olds owe an average federal debt of $43,208.
The average credit card holder in the U.S. had $5,668 in credit card debt in Q2 2021 — that's 1% higher than Q1 2021's $5,611 average. From the first Q1 2020 to Q2 2021, the average credit card debt per cardholder decreased by $766 or 12%. The average cardholder had $6,434 in Q1 2020.
As of Q2 of the 2019 fiscal year, for borrowers ages 25 to 34—a significant share of the Millennial population—there were $497.6 billion dollars in outstanding student loan debt for about 15.1 million borrowers. 104 This translates to an average (mean) student debt of around $33,000 dollars for each borrower.
According to the new "State of Credit 2021" report from Experian, one of the three major credit reporting bureaus, Gen Xers have the highest credit card debt and highest levels of mortgage and non-mortgage debt of any generation, on average.
Members of Generation X have the highest average credit card debt at $7,155, followed by baby boomers and millennials, according to credit bureau Experian's latest consumer findings.
Never owe more than 20% or your credit limit. Ex: if you have a card with a $1000 credit limit, you should never owe more than $200 on that card. Charge more than 20% and your credit score can fall, even though the credit compant gave you a bigger credit limit.
1. In 2020, the average American's debt payments made up 8.69% of their income. To put this into perspective, the average American allocates almost 9% of their monthly income to debt payments, which is a drop from 9.69% in Q2 2019.
Good debt is often exemplified in the old adage “it takes money to make money.” If the debt you take on helps you generate income and build your net worth, then that can be considered positive. So can debt that improves your and your family's life in other significant ways.
When a lender or landlord reviews your credit, it might use one of two credit scoring models: VantageScore or FICO. Both scoring models range from 300 to 850. And according to a July 2021 VantageScore report, the average credit score in America is 697.
New Experian data finds consumers in their 20s and 30s have up to $27,251 in credit card, auto loans and student loan debt.
18—24 year olds = $9,593
The average debt for the "Gen Z" age group is $9,593, according to Experian. Student loans are the primary source of debt for this age group, followed by credit card debt.