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Top 10 Credit Card Debt Statistics
40% of Americans who own credit cards haven’t been debt-free since 2018.
American credit card owners carry approximately $887 billion of debt.
Credit card debt in the US has increased by $46 billion since Q1 of 2022.
In 2021, the average debt among Americans with credit cards was $6,569.
28% of Americans don’t know their cards’ interest rates.
Only 5% of Americans believe they can pay off their credit card debt within five years.
By 2025, credit card penetration in the US could reach 66%.
The average credit card APR reached 18.67% in October 2022.
The average credit card balance decreased by 1.8% in 2021.
Gen Xers have the highest average credit card balance at $7,155.
48% of people aged 35 or younger carry debt on their credit cards.
Alaska is the state with the highest average credit card debt.
The Latest Credit Card Debt Facts & Stats
42% of US adults with credit cards added to their debt during the COVID-19 pandemic.
Even though many Americans shifted the funds allocated for traveling toward servicing credit card debt, many also added to the amount they owed. Moreover, 47% of consumers with credit cards admit that the pandemic increased their debt.
Most credit experts explain the shift in spending habits with various pandemic-related causes, including job losses and medical bills.
(Bankrate)
40% of Americans who own credit cards haven’t been debt-free since 2018.
Credit card owners in America were 2.2 times more likely to report an increase in credit card balances at the end of the pandemic than before COVID-19. However, more than a third of credit card users have already dealt with long-term debt, and the increased amounts wouldn’t be their first rodeo.
For instance, 15% of credit card users in America admit they’ve carried a balance on their credit cards even before 2006.
(Inside1031)
In 2022, American credit card owners carried approximately $887 billion of debt.
The overall US national debt continues to grow, and credit card balances contribute significantly to the rising trends. For example, Americans increased the national credit card debt by $46 billion since Q1 of 2022.
Moreover, the increase between the second quarters of 2021 and 2022 amounts to around $100 billion, the largest year-over-year growth in the last two decades.
(LendingTree)
In Q1 of 2022, American credit card holders carried a balance on 54% of their active cards.
The American Bankers Association revealed that more than half of credit cards in the first quarter of 2022 carried a balance. Likewise, the same study found that the outstanding credit increased by 16 bps in the first part of the year.
Nevertheless, credit card debt data shows that the outstanding credit as a share of disposable income remained low compared to pre-COVID levels when it reached 74 bps in the first quarter of 2020.
(American Bankers Association)
Credit card debt in the US has increased by $46 billion since Q1 of 2022.
Consumer credit reports provide a window into the state of credit card debt and an overview of America’s overall consumer debt. For instance, the data from the Federal Reserve Bank shows that US credit card holders increased their balances by a whopping $46 billion during the second quarter of 2022.
In addition, statistics on credit card debt reveal a 13% year-over-year increase in Q2, despite the sharp decline in the first year of the COVID-19 pandemic.
(Federal Reserve Bank of New York)
In 2021, the average debt among Americans with credit cards was $6,569.
Unpaid balances plunged when the pandemic took hold, dropping from around $927 billion in Q4 of 2019 to approximately $770 billion in Q1 of 2021.
At that time, the average unpaid balance among US adults with credit cards stood at $6,569, with debt on more than half of active cards in America.
(LendingTree)
National Credit Card Debt Statistics
16% of Americans own five or more credit cards.
Credit cards are an essential part of the American lifestyle, despite the risks associated with overspending and exceeding the recommended debt-to-income ratio.
Unpaid balances, alongside student debt, put a significant burden on households across the US, with 55% of Americans carrying a credit card debt from month to month. Nonetheless, 73% of Americans predict the US will become a cashless society.
(Inside1031)
28% of Americans don’t know their cards’ interest rates.
According to Inside1031, a sizable percentage of Americans with credit card debt shows a lack of interest in sorting their unpaid balances or learning more about credit card interest rates.
For instance, studies reveal that 17% of US adults are unfamiliar with their credit scores. Meanwhile, one in five Americans carry more than $20,000 in credit card debt.
(Inside1031)
Only 5% of Americans believe they can pay off their credit card debt within five years.
Nearly a third of Americans with credit cards owe between $1,001 and $5,000, while 15% have more than five thousand dollars in unpaid balances.
Regarding credit card debt consolidation, a third of US adults (33%) feel they will need more than two years to repay the debt. Five percent of Americans say they will need five years, while 3% of credit card holders believe they will never repay the debt.
(Yahoo Finance)
By 2025, credit card penetration in the US could reach 66%.
The credit card penetration rate illustrates the share of the population using credit cards. So, according to Statista’s forecast, two-thirds of Americans will be credit card holders within the next three years.
Consequently, the overall US credit card debt will grow following the increase in the number of credit card owners.
(Statista)
41% of Americans say that cash-back is their favorite credit card feature.
One in four US adults recognizes cash back as the favorite feature, around three times more popular than the next item on the list.
Namely, 14% of Americans say that wide acceptance is their top-listed credit card feature, while 9% look for lower interest rates—only 6% of credit card holders listed travel rewards as their favorite feature.
(Bankrate)
The Average Credit Card Debt in the US
The average American adult has four credit cards.
On average, US adults have four credit cards in rotation, with differences among the states. For example, the New Jersey population has the highest average, with 4.1 credit cards per adult.
On the other hand, Mississippi and Alaska residents have the lowest average of credit card holders, with 2.8 per adult.
(CNBC)
The average credit card APR reached 18.67% in October 2022.
APR, or the annual percentage rate, represents the costs of borrowing money, i.e., it stands for the yearly interest on your loans. Unfortunately, the latest government statistics on credit card debt also show a rising trend in the credit card APR.
For instance, according to Bankrate data, the average APR at the end of June stood at 16.91%.
(Bankrate)
The average credit card balance decreased by 1.8% in 2021.
In the Q3 of 2021, the average credit score in the United States reached a record-breaking 714 points. Likewise, data showed that credit utilization had stabilized while delinquency rates remained low.
Consequently, credit scores skyrocketed while the average credit card debt fell by 1.8% compared to Q3 2020. According to Experian, the average credit card balance in Q3 2021 was $5,221.
(Experian)
Demographic Statistics about Credit Card Debt
More than 175 million US adults have a credit card.
The ever-increasing prices of consumer goods might turn even more people toward using credit cards, even though borrowing always comes at a cost. After all, interest rates are also rising, meaning you’ll repay more than ever.
According to CNN’s data, more than 175 million Americans own at least one credit card, with approximately half of the active cards carrying a balance.
(CNN)
Gen Xers have the highest average credit card balance at $7,155.
According to the latest American credit card debt statistics, members of Generation X have the highest unpaid balance, exceeding seven thousand dollars on average. Baby boomers take the second spot with an average credit card debt of $6,043, while Millennials have $4,322 on average.
On the other side of the spectrum, members of Generation Z have the lowest credit card balance, with only $1,936 on average.
(CNBC)
Members of Generation X are the most likely to carry more than $15,000 in credit card debt.
Given that nearly one in five US adults has more than $20,000 in unpaid balance, it could seem that credit card debt in America puts a burden on most households. Regarding generational tendencies, Gen Xers are the most likely to exceed $15,000 in credit card debt.
In addition, studies show that 7% of Millennials feel indifferent about being unable to pay their monthly credit card bills.
(Inside1031)
48% of people aged 35 or younger carry debt on their credit cards.
US adults aged 35 and younger have the lowest average unpaid balance at around $3,700, with nearly half of them carrying credit card debt.
On the other hand, the average amount of credit card debt for people aged 75 or older is around $8,100. However, statistics reveal that only 28% of credit card holders in this group have unpaid balances. Overall, Americans aged 45-54 are the most likely to have credit card debt.
(Moneygeek)
Alaska is the state with the highest average credit card debt, with $11,277 per household.
The average household in the United States carries $8,942 in unpaid balances, but residents of some states have higher average credit card debt than others.
For instance, WalletHub reveals that the population of Alaska has the highest average debt, followed by Hawaii with $10,190 and Virginia with $9,176 per household.
(WalletHub)
FAQ
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Conclusion
Credit cards are an irresistible temptation for many Americans, despite the risk associated with overspending and a lack of financial discipline. Yet, for most, the benefits outweigh the dangers, with credit card debt statistics showing that more and more Americans own credit cards and carry a balance.
Although there’s no magic cure for the mountain of debt Americans face, the facts and data we provided above should create a comprehensive overview of the financial situation and help those looking to reduce debt.
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