How much credit card debt is the average person in?

Asked by: Glenna Wisoky  |  Last update: February 13, 2024
Score: 4.8/5 (8 votes)

Key points. Average credit card debt in America is $7,951, based on 2022 data from the Federal Reserve and the U.S. Census Bureau. Credit card debt varies due to age/income/other factors, but only makes up a fraction of personal debt. The average consumer's debt in America is $95,067.

How much credit card debt is normal?

Overall, the national average card debt among cardholders with unpaid balances in the fourth quarter of 2023 was $6,864, down from $6,993 in the third quarter. That includes debt from bank cards and retail credit cards.

Is $5000 in 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 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. Paying off that bill? Well, that's not impossible either, though it is considerably less fun.

What percentage 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.

Americans Tell Us How Much Credit Card Debt They Have

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Is 10k in credit card debt bad?

Having any credit card debt can be stressful, but $10,000 in credit card debt is a different level of stress. The average credit card interest rate is over 20%, so interest charges alone will take up a large chunk of your payments. On $10,000 in balances, you could end up paying over $2,000 per year in interest.

What is the average debt in the US?

Average debt levels

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 many people have 10k in credit card debt?

3 tips to pay down your credit card debt quickly

About 14 million Americans are at least $10,000 in credit card debt, according to a new survey. Here's what you can do to pay yours down.

What is considered really bad 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.

How to pay off $3,000 in 3 months?

The best way to pay off $3,000 in debt fast is to use a 0% APR balance transfer credit card because it will enable you to put your full monthly payment toward your current balance instead of new interest charges. As long as you avoid adding new debt, you can repay what you owe in a matter of months.

Is it OK to be in credit card debt?

The simple answer is that having minimal credit card debt is the best policy. The more complex answer: “it depends.” How much credit card debt is okay for one person may not be okay for the next – it all depends on your financial situation, your spending habits and your overall credit limits.

What age group has the most debt?

Analysis of the debt share in the U.S. shows that people aged 40-49 hold the largest amount of debt at $4.21 trillion in total. People aged 50-59 have the most credit card debt in total at $0.21 trillion, and people aged 30-39 have the most student loan debt at $0.5 trillion.

What is the average credit score in America?

In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.

Which gender has more credit card debt?

Men have 2% more credit card debt than women. 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.

What is the average credit card debt by age?

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. With an average credit card balance of $1,963, consumers in Generation Z carry the lowest credit card debt.

What is the most common debt in America?

Mortgage balances, the largest source of debt for most Americans, rose 5.9 percent between 2020 and 2021. The average mortgage balance is $220,380, according to Experian. Auto loan balances reportedly rose 6.5 percent year-over-year in 2021, and the average auto loan balance is $20,987.

Is $20,000 a lot of debt?

$20,000 is a lot of credit card debt and it sounds like you're having trouble making progress,” says Rossman.

How many Americans live paycheck to paycheck?

Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.

How much debt is serious?

Key takeaways

A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.

How long will it take to pay off $20000 in credit card debt?

It will take 47 months to pay off $20,000 with payments of $600 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.

Is $15000 in credit card debt a lot?

It's not at all uncommon for households to be swimming in more that twice as much credit card debt. But just because a $15,000 balance isn't rare doesn't mean it's a good thing. Credit card debt is seriously expensive. Most credit cards charge between 15% and 29% interest, so paying down that debt should be a priority.

Is 0% credit card debt good?

While a 0% utilization is certainly better than having a high CUR, it's not as good as something in the single digits. Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score.