Credit Card Debt Statistics
Table of Contents
We pulled together all the credit card debt statistics you need to know to understand how credit cards fit into the payment processing ecosystem. Ultimately, you’ll see how to make the most of them as a consumer or business owner.
The Average American Has Over 5,000 USD in Credit Card Debt
The Average Credit Card Limit Is Over 12,000 USD
Older Americans Have the Most Credit Card Debt
Millions of Americans Carry More Than 10,000 USD on Credit Cards
Like Consumers, 53 Percent of Businesses Also Use Credit Cards
15 Percent of Americans Have Long-Term Credit Card Debt
- What percentage of the population has credit card debt? Credit card debt is widespread, and 95 percent of Americans have at least one credit card. Slightly more than 50 percent have 1,000 USD or more in credit card debt.
- How much does the average person have in credit card debt? On average, American consumers owe 5,221 USD on their credit cards. The household average is slightly higher at 6,270 USD.
Consumers Use About 25 Percent of Their Available Credit Lines
- How much debt is normal? In addition to credit card debt, many American consumers also carry mortgages, auto loans, student loans, and other forms of debt. On average, these debts add up to 90,460 USD. Total debt varies considerably by age, with people 18-23 carrying the least and those 40-55 having the most.
Nearly Half of Americans Depend on Credit Cards
Here are some other questions to ponder:
- What percentage of Americans are debt free? Only 23 percent of Americans were completely free of debt as of 2020. This isn’t purely a credit card debt statistic, though, as it reports people who are free of all forms of debt.
- How much debt is too much? The amount of debt that is considered too much depends on your income. A rule of thumb used by mortgage companies is that debts shouldn’t exceed 36 percent of your income.
The Average Credit Card Interest Rate Is 16.4 Percent and Rising
- How can you pay off credit card debt? Paying off excessive credit card debt works wonders to make room in your budget and improve your credit score. To pay off debt quickly, you should make more than the required minimum payments and pay your highest interest debt first. Also, explore loan consolidation options that could help lower your monthly payments.
The Majority of Americans Have Missed at Least One Credit Card Payment
- What is the average credit score in America? The most recently reported average credit score was 714, a record high.
- What happens if you ignore credit card debt? Ignoring credit card debt is a major mistake that can lower your credit score and put you in financial jeopardy. At first, interest and penalties will add up, increasing your debt while your credit score drops due to missed payments. Eventually, your debt will be turned over to a collections agency, or the credit card company can take legal action to garnish your wages or bank account.
- Does credit card debt disappear after seven years? Like other forms of reporting, credit card debt will be removed from your credit report after seven years. However, this doesn’t mean that the debt has been forgiven. You’ll still owe the money, even after it no longer appears on your credit history.