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How much credit card debt does the average American have?
It’s a staggering $7,951 per household in 2022, according to the Federal Reserve Bank of New York and the U.S. Census Bureau. This figure represents a significant increase from previous years, highlighting the growing burden of credit card debt on American families.
But let’s dig deeper into the numbers and uncover the hidden stories behind this statistic.
The National Picture: A Sea of Plastic
- Total credit card debt in the U.S. reached a record high of $1.129 trillion in the fourth quarter of 2023. This figure represents a 202 billion dollar increase from the previous year, showcasing the relentless rise of credit card debt.
- The average credit card debt among cardholders with unpaid balances in the fourth quarter of 2023 was $6,864. This number, although lower than the national average, still paints a grim picture of the financial strain many Americans face.
- The number of credit card accounts carrying a balance rose to 56% in the third quarter of 2022. This indicates that a significant portion of Americans struggle to pay off their credit card balances in full each month, further contributing to the overall debt burden.
State-by-State Breakdown: A Patchwork of Debt
- New Jersey residents carry the highest average credit card debt of any state, with a staggering $8,909 per cardholder. This figure is significantly higher than the national average, highlighting the state’s unique financial challenges.
- Mississippi residents, on the other hand, have the lowest average credit card debt of any state, with a manageable $4,956 per cardholder. This disparity showcases the vast differences in financial situations across the country.
- Oregon experienced the fastest-growing credit card debt between the third and fourth quarters of 2023, with an increase of 7.8%. This rapid rise could be attributed to various factors, including economic instability and rising living costs.
Interest Rates: A Double-Edged Sword
- The average APR for all credit cards in the first quarter of 2024 stood at 21.59%. This figure represents a significant increase from previous years, adding to the burden of carrying credit card debt.
- For cards accruing interest, the average APR in the first quarter of 2024 was 22.63%. This number highlights the substantial cost associated with carrying a balance on credit cards.
- New credit card offers come with an average APR of 24.66%, indicating the high cost of borrowing money through credit cards.
Delinquency: A Warning Sign
- The 30-day delinquency rate for credit card payments rose to 3.10% in the fourth quarter of 2023. This increase indicates that more Americans are struggling to make their minimum payments on time, raising concerns about potential financial hardship.
The Bottom Line: A Call for Financial Action
For American households, the rising tide of credit card debt presents a big challenge. To address this issue, it is imperative to comprehend the extent of the problem, examine state-by-state patterns, and keep track of interest and delinquency rates.
People can manage the complexity of credit card debt and attain financial stability by establishing responsible credit card practices, getting financial advice, and looking into debt management options.
Remember, knowledge is power. Let’s use the insights revealed in this report to empower ourselves and build a brighter financial future.
Average credit card debt by state
Here’s a look at the states with the highest and lowest average American credit card debt, according to the most recent data from Experian. Alaska had the highest credit card debt at $7,338, and Indiana had the lowest with an average credit card balance of $5,017.
| State | Average credit card debt |
|---|---|
| Source: Experian | |
| Alaska | $7,338 |
| Connecticut | $6,825 |
| New Jersey | $6,879 |
| Maryland | $6,668 |
| Texas | $6,542 |
States with the lowest average credit card debt:
| State | Average credit card debt |
|---|---|
| Source: Experian | |
| Wisconsin | $4,808 |
| Iowa | $4,811 |
| Kentucky | $4,894 |
| Mississippi | $4,912 |
| Indiana | $5,017 |
- State Average credit card debt Source: Experian Alabama $5,364 Alaska $7,338 Arizona $5,755 Arkansas $5,183 California $6,030 Colorado $6,274 Connecticut $6,825 Delaware $6,015 Florida $6,408 Georgia $6,265 Hawaii $6,343 Idaho $5,181 Illinois $6,011 Indiana $5,017 Iowa $4,811 Kansas $5,532 Kentucky $4,894 Louisiana $5,577 Maine $5,078 Maryland $6,668 Massachusetts $6,046 Michigan $5,265 Minnesota $5,425 Mississippi $4,912 Missouri $5,417 Montana $5,385 Nebraska $5,312 Nevada $6,176 New Hampshire $5,944 New Jersey $6,819 New Mexico $5,350 New York $6,269 North Carolina $5,658 North Dakota $5,408 Ohio $5,320 Oklahoma $5,654 Oregon $5,316 Pennsylvania $5,640 Rhode Island $5,867 South Carolina $5,714 Sout
Average credit card debt by age group
According to the most recent Experian analysis, Generation X carries the largest credit card balances of all five generations. While each generation saw its debt climb between 2021 and 2022, the silent generation added the least amount of debt (4.4 percent), while Gen Z saw the biggest increase (25.1 percent) in their card balances.
| Generation | Average credit card debt |
|---|---|
| Source: Experian | |
| Silent generation (77+) | $3,316 |
| Baby boomers (58–76) | $6,245 |
| Generation X (42–57) | $8,134 |
| Millennials (26–41) | $5,649 |
| Generation Z (19–25) | $2,854 |
Americans Tell Us How Much Credit Card Debt They Have
FAQ
How much credit card debt does average American have?
What is considered high credit card debt?
How much debt does the average American pay?
How many people have $50,000 in credit card debt?
What is the average credit card debt in the US?
Credit card debt and the amount of credit people are using are both increasing. Carrying thousands in credit card debt has become normal for many Americans. The average credit card balance as of the third quarter of 2022 was $5,910, according to a 2023 Experian report.
What is the average debt in America?
The average debt in America is $104,215 across mortgages, auto loans, student loans, and credit cards. Debt peaks between ages 40 and 49 among consumers with excellent credit scores. Washington has the highest average debt at $180,462, and West Virginia has the lowest at $64,320.
How much credit card debt do you owe a year?
The average American household owes $7,951 in credit card debt a year, according to 2022 data from the Federal Reserve Bank of New York and the U.S. Census Bureau. How much has credit card debt increased? Credit card balances increased by about $50 billion, or 4.6%, in the fourth quarter of 2023.
Is credit card debt normal?
Carrying thousands in credit card debt has become normal for many Americans. The average credit card balance as of the third quarter of 2022 was $5,910, according to a 2023 Experian report. This year, overall credit card debt passed $1 trillion, according to the Federal Reserve Bank of New York.