Key Credit Card Debt Statistics & Facts

Americans owed a mind-blowing $16.15 trillion in housing and non-housing debt as of Q2 of 2022. What's more, household debt rose by 2% or a total of $312 billion while mortgage balances increased by $207 billion to a whopping $11.39 trillion. In the same period last year, mortgage balances which comprise the largest component of Americans’ overall debt, stood at $10.44 trillion.

In addition, credit card debt data from the same period reveals an increase of $46 billion compared to the previous quarter, when the balance was $841 billion, an expected jump as per the usual seasonal patterns. However, even though the accumulated outstanding balances borrowers carry per month remained at a relatively low level compared to the situation before the pandemic, it is important to note that the 13% YoY increase registered in Q2 of 2022 is the highest in the past 20 years.

(New York Fed)

Credit card debt percentage as a portion of the total debt of US citizens currently stands at the same level it was in 2021, at 5.3%. At 9.5%, this item had reached its record-high percentage of the total debt in 2003. During the financial crisis of 2007 and 2008, credit card debt as part of the national US debt reached a stagnation point at 6.2% from 2018 to 2020, after which it continued to decrease until 2019 and 2020, when it once again set at 6.2%.

(New York Fed)

What the above data means is that the average credit card APR will hit the highest point since March 2020, which will significantly affect credit card balances of American consumers. The estimates are based on Fed hikes which have consistently been at three percentage points above the federal fund’s interest rate.

Moreover, this spike would most likely cause the prime rate to jump by at least 3.75% by the end of 2022, as per the estimates. In comparison, in 2021, the average interest rate on credit cards was 16.4% representing an increase of only 0.2 percentage points compared to 2020.

(FRED, Bankrate)

From less than a year to more than five years – that’s how long consumers need to repay a credit card debt in America. In fact, a recent poll shows 38% of US people carried debt for less than a year or exactly one year, another 50% took a year or more to repay it, while 32% said they needed two years or longer. Data further reveals that 14% of US adults struggled for a total of five years before they managed to get their balance back to zero.

(Bankrate)

According to an online survey of 2,400 US credit card holders, over half of them have managed to service their debts since the start of the pandemic. However, there were those who added to their accumulated balance on account of it. Moreover, statistics on credit card debt reveal that 47% of those who saw an increased balance said it was due to the pandemic, while 33% said the reasons their balance ballooned were not related to the pandemic.

(Bankrate)

Moreover, the average credit card limit on these cards is $30,365. The above data is based on the national credit report from Q3 2020, which also reveals that the average number of credit cards the American consumer owns has dropped by 4% since 2019. This figure is in line with the pattern of credit card debt decrease, which characterized the American consumer during times of financial uncertainty induced by the coronavirus pandemic.

(Experian)

In comparison, in the first quarter of 2021, US households had a median credit card balance of $8,558. Seen as a statistic, the average household credit card debt saw a 4.5% year-over-year increase. And according to projections, this debt is $2,995 below the breaking point for household finances. The average household debt adjusted for inflation, on the other hand, is $8,430.

(WalletHub)

Despite the decreased spending that marked the age of COVID, the balances of US credit card holders have started going up again. In fact, in the first quarter of 2022, the average debt of US credit card owners jumped by 3% compared to the same period last year. In 2021, the average debt the US adult had accumulated on their credit card was $5,611.

(MoneyGeek)

For a total of 53% of US business owners, credit cards are a means of additional funding. And according to US credit card debt data for businesses, the average utilization rate in the third quarter of 2020 was 35%. Average APR rates for business credit cards, on the other hand, are much lower compared to the national average and presently stand at 14.16%. Data further reveals that 80% of companies are expected to face financial troubles in the upcoming year, with credit availability cited as a pain point by a little over 30%.

Read More: How to Build Business Credit

(Credit Cards)

The above amount, however, is believed to be largely affected by the few credit cards with very high limits. In 2020, based on income, credit history, and age, the limit on credit card balances for the average American consumer was slightly lower at $12,890. Again, this number is skewed upward by credit cards with higher limits since, in reality, a credit card with a limit of $12k or over usually requires a pretty high credit score and minimal outstanding debts.

(WalletHub)

Most credit card owners generate some balance at some point, and yet according to the report of the Bankers Association and the statistics about credit card debt originating from it, in Q1 of 2022, 24% of Americans held a credit card but never used it. In addition, 36% declared they did use their credit card but didn’t generate any balance. The report also reveals that of all the active credit cards, a whopping 46% never carried any balance.

(American Bankers Association)

The current 30-day delinquency rate is almost insignificant compared to what it was during the Great Recession. Back then, it had reached a record high level of nearly 7%. However, despite the fact that, at the moment, a very low number of credit card holders are at least 30 days late with a payment, it should be noted that this item has been registering an increase for three consecutive quarters. In Q2 of 2022, it stood at 1.66%.

(Federal Reserve Board)

The above figure includes mortgages, bills, credit card debt and personal loans, and student loans. Moreover, data shows Gen Xers carry the highest debt or $140,643, followed by Baby Boomers with $97,290 in debt, Millennials with $87,448, and the Silent generation, which has an outstanding debt of $41,281. Gen Zers are the least indebted cohort, with $16,043.

(Debt.org)

Even though most states followed the national trend of balanced spending throughout 2021, in 2022, Alaskan households were the ones to generate the highest YoY credit card debt increase of $770, participating with a staggering $3,119,394,417 in the total credit card debt in the US. The people of Hawaii follow with the second-highest household credit card debt at $10,190, while Virginians rank third with $9,176.

Iowa and Wisconsin, on the other hand, are the countries with the lowest credit card balance per household, standing at $6,458 and $6,553, respectively. Indiana follows with $6,932.

(WalletHub)

Moreover, compared to 2020, when the average debt Gen Xers had on their credit cards was $7,185, this amount notes a decrease of 1.6%. In 2021, according to credit card debt statistics, the balances of the respective generations reverted to their typical pattern, with the youngest, Gen Zers and Millennials, spending the most and thus marking the highest increase in credit card debt by 11.6% and 5.2% respectively. Gen Zers carry an average credit card debt of $2,282, while the corresponding figure for Millennials stands at $4,576.

In contrast, older generations, like Boomers and the Silent generation, saw the highest credit card debt decrease by 4.7% and 3.1%, respectively. And so, the average credit card balance of Baby Boomers reached $5,804, while that of the Silent generation dropped to $3,177. Compared to Brits, who incur an average of £439 in debt during the holiday season.

(Experian)

Hispanic people, on the other hand, have an average debt of $5,510 on their credit cards. The same debt of White, non-Hispanic consumers stands at an average of $6,940, while the one of other communities, like the Asian American, is $6,320. In fact, studies show race and ethnicity are not only one of the most important factors for credit card approval, but they are also the reason why Black and non-Hispanic consumers have the lowest balances–they are less likely to get approval for credit card contracts.

(Bankrate)

According to American credit card debt statistics, the higher the education level, the higher the balances of credit card holders. Data shows credit card holders with college degrees carry an average debt of $7,940 which is twice the one of people without a high-school education. US citizens that have obtained some college degrees owe an average of $6,210, while the debt of credit card holders with high-school diplomas sits at $4,940.

(Bankrate)

Despite the popular opinion that women are bigger spenders, data on the average credit card debt per month by gender reveals the percentage of women with credit card balances equal to zero is lower than that of men, or 9% and 16%, respectively.

Women are also less likely (4%) to carry a monthly credit card balance of over $10k as opposed to men, 10% of which admitted to carrying such a balance. In addition, 7% of women and 13% of men have a credit card balance between $7.5k and $10k, 9% of women and 16% of men carry between $5k and $7.5k, while 15% of women and 19% of men carry from $2.5k to $5k per month.

The only section where statistics on women in credit card debt in the US are higher compared to those of men (49% vs 32%) is where the monthly credit card balance carried is between $1k and $2.5k.

(Lantern)

The above data refers to US households with an annual income ranging from $90k to $100k. In addition, 46% of households with an income of $80k to $89.9k reported they carry a credit card debt, 57% of those with an income ranging from $60 to $79.9k, and 55% of those earning $40k to $59.9k a year. US credit card debt statistics further reveal that 46% of households earning between $20k and $39.9k carry debt on their credit cards, and just 30% of those with an income of under $20k. The average debt on the credit cards of those with the highest income is $12,600, which is nearly three times higher than the one of households with the lowest income, standing at $3,800.

(MoneyGeek)

In other words, according to the most recent data, the average credit card debt for a married couple is a whopping $6,881, while that of single borrowers is just $4,870. Despite this, however, the delinquency ratio of singles is significantly higher, at 32% or more than twice that of people who’ve tied the knot, which is 15%. Data also reveals that in the second quarter of 2019, the total debt of married US borrowers was higher by a fantastic 120% compared to that of singles.

(Experian)

Despite the fact that in the US, one should be at least 18 years old to sign a credit card contract, most parents believe their children ought to have a credit card sooner–at 17.7 years old. Data, however, reveals that most college students held their first credit card when they were 19.7 years old, and 50.6% obtained it on their own. 31.5% had one arranged by their parents, 9.9% by a family member, and 7.2% got an in-mail offer to obtain one.

(College Finance)

This amount might not seem like much compared to the average debt of US credit card holders, but according to data, a little over two years ago, the average balance of card-holding students was more than half the amount–a total of $1,183. And, even then, this percentage was higher by 31% compared to 2016. Moreover, data reveals that credit card usage among students is on the rise, with 52% of them reporting using one or more cards and another 15% saying their credit card debt is higher than $5,000.

(Tally)

In addition, 58% have student loans, 38.2% have cell phone bills, 36.3% have medical debt, and as many as 33.1% reported they have a personal loan. And according to student credit card debt statistics, of the total of 96.3% of students who reported having one of the aforementioned debts, a massive 52.7% declared their credit card debt is the one that worries them the most. Another 43.6% said they are worried about their student loan debt, while 18.5% mentioned their personal loan. Medical debt and cell phone bills are the cause of worry for 21.4% and 12.6% of college students, respectively.

(College Finance)

A total of 60% of credit-card-holding students pay their debts on time, which indicates that most of them nourish healthy credit habits and avoid paying additional interest rates, and get to reap the benefits that come with it, cash back being one of them. Moreover, college student credit card debt statistics reveal that 26% plan to make payments higher than the minimum so they can clear their debt faster and save money on interest rates.

(Tally)

Even though the monthly credit card expenses of college students have spiked since the pandemic, the positive side is that for many of them, good credit card habits have become a priority. In fact, studies show that 52.1% of college students think paying their credit card debt on time demonstrates good credit habits, 47.5% say the same about paying more than the minimum, while 40.8% believe they should maintain their budget.

Staying below the credit limit is considered a common sign of good credit habit by 31.8%, optimizing rewards with fewer cards by 32.5%, monitoring accounts by 29.8% and 25.8% believe in being on the lookout for better offers. Bouncing back from mistakes is also a sign of good credit card habits, according to 13.9% of college students.

(College Finance)