What percentage of American households have a credit card balance?

Asked by: Melany Pagac  |  Last update: February 9, 2022
Score: 4.4/5 (13 votes)

15% of Americans Have Been in Credit Card Debt for 15 Years
A separate survey conducted by Inside 1031 found that 55% of people carry a credit card balance from month to month. In addition, 40% haven't been credit card debt-free since before 2018 — and 15% have had credit card debt since before 2006.

What percentage of credit card users carry a balance?

Americans carried a balance on 51% of all active credit card accounts in the second quarter of 2021, according to the most recent available data from the American Bankers Association. Job No. 1 for anyone with a credit card is to pay that balance off in full at the end of each month.

How much does the average American have in credit card debt?

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.

What percent of households have a credit card?

Credit cards have gone from being a gimmick just a few decades back to being a major part of Americans' financial lives. General purpose credit cards such as Visa, MasterCard and Discover can be found in 70.2 percent of all American households, according to the U.S. Census Bureau.

What percentage Americans have credit cards?

70% of the United States population carries a credit card, with 34% of Americans carrying 3 or more cards. Most Americans carry multiple credit cards, most likely because it will raise credit limits as the funds are dispatched among multiple different outlets.

Credit Card Utilization Myths | BeatTheBush

29 related questions found

How many credit cards does the average American family have?

The average American has two to three credit cards, and Credit Karma members have nearly five. See how you compare and learn how opening and closing accounts can affect your credit.

Which country has the most credit card debt?

3. The USA has the highest average national credit card debt. Shift Processing compared the median credit card debt in the United States in 2020 to the one in nine other countries worldwide. The USA is in the lead, according to global credit card debt statistics, with average 2020 debt of $5,331.

How much debt does the average American family have?

The average U.S. household with debt now owes $155,622, or more than $15 trillion altogether, including debt from credit cards, mortgages, home equity lines of credit, auto loans, student loans and other household obligations — up 6.2% from a year ago.

What is the average American debt to income ratio?

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.

How much does the average American have in savings?

The average American's savings varies by household and demographic. As of 2019, per the U.S. Federal Reserve, the median transaction account balance (checking and savings combined) for the American family was $5,300; the mean (or average) transaction account balance was $41,600.

Is credit card debt going up or down in America?

In the third quarter of 2021, Americans racked up $17 billion in credit card debt, the same increase as in the second quarter, according to data published Tuesday in the New York Federal Reserve's Quarterly Report on Household Debt and Credit.

How much credit card debt does the average American have 2019?

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. And Alaskans have the highest credit card balance, on average $8,026.

How many Americans are in debt?

Total American auto loan debt is $1.42 trillion. Thirty seven percent of households in the United States (that's about 45.4 million households) have this kind of debt, with an average of $31,142 per household.

What of American households say they use no credit cards at all?

According to a 2020 report by the Federal Reserve, 79% of U.S. consumers had at least one credit card, which could mean as many as 21% of U.S. consumers survive without one.

Do rich people use credit cards?

Most rich people can easily afford to pay cash for every purchase. Despite this, even the wealthy use credit cards regularly. Here are four big reasons why.

What is the 2nd most debt for American households?

Consumers in the United States had 15.24 trillion dollars in debt as of the third quarter of 2021, the majority of which was home mortgages, at 10.44 trillion U.S. dollars. Student loan debt was the second largest component, totaling 1.58 trillion U.S. dollars.

At what age should you be debt free?

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.

How much debt does the average American have 2021?

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.

What country is #1 in debt?

Japan, with its population of 127,185,332, has the highest national debt in the world at 234.18% of its GDP, followed by Greece at 181.78%.

Which country is debt free?

1. Hong Kong —0.1%. Hong Kong's market-driven economy is characterised by a lucrative financial banking sector, well-regulated financial controls, large foreign exchange reserves, and virtually no public debt.

What person is in the most debt in the world?

Former financial arbitrage trader Jerome Kerviel is the most indebted man on the planet, owing his former employer $6.3 billion. The amount Kerviel owes to French bank Societe Generale for fraudulent trades made in 2007 and 2008 would make Kerviel one of the 50 richest people in America if those debts were assets.

What percent of college freshman have credit cards?

24. 57 percent of college students have and regularly use a credit card, while 85 percent have and regularly use a debit card (Sallie Mae).

What is the average credit score in America?

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.

What is considered a lot of credit card debt?

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.