The median household income hit $79,900 in the first quarter of 2021, according to the U.S. Department of Housing and Urban Development. That's almost $35,000 more than it was in 2000. But the typical American household now carries an average debt of $145,000.
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.
How much money does the average American owe? 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.
Average credit card balance: $5,221. Average revolving utilization rate: 25 percent. Average number of credit cards: 3. Average retail credit card balance: $1,887.
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.
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.
Average American Credit Card Debt in 2022: $5,221. Many or all of the products here are from our partners that pay us a commission.
The average credit card debt for 30 year olds is roughly $4,200, according to the Experian data report.
How much credit card debt do Americans have? Americans' total credit card balance is $841 billion in the first quarter of 2022, according to the latest consumer debt data from the Federal Reserve Bank of New York. That's a $15 billion drop from $856 billion in the fourth quarter of 2021.
From 2018 to 2020, the CFPB estimates that Americans paid roughly $120 billion per year in credit card interest and fees. That works out to about $1,000 per year for every American household.
Lenders typically say the ideal front-end ratio should be no more than 28 percent, and the back-end ratio, including all expenses, should be 36 percent or lower.
Former Société Générale rogue trader Jérôme Kerviel owes the bank $6.3 billion.
The average American have 4 credit cards, according to the 2019 Experian Consumer Credit Review.
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.
Likewise, millennial consumers (ages 25 to 40) have an average of $27,251 in non-mortgage debt, presumably across credit cards, auto loans, personal loans and student loans.
According to Sallie Mae's study “Majoring in Money 2019,” the average college student carries $1,183 in credit card debt. That's an eye-opening 31% increase compared to the previous 2016 report. That may not sound like much considering American households carry an average credit card balance of $6,270.
On average, Americans carry $5,315 in credit card debt, but if your balance is much higher—say, $20,000 or beyond—you may be feeling hopeless. Paying off a high credit card balance can be a daunting task, but it's possible.