What is the average credit card debt in the US?
Average Credit Card Balances up 13.2% to $5,910 in 2022, Experian. Accessed February 13, 2024. Economic Well-Being of U.S. Households in 2022 [May 2023], The Federal Reserve.
| Generation | Average Credit Card Debt |
|---|---|
| Millennials | $6,521 |
| Generation X | $9,123 |
| Baby boomers | $6,642 |
| Silent generation | $3,412 |
The average credit card debt held by Gen Z is $2,854, according to Q3 2022 data from the credit bureau Experian. This is the lowest average for any adult generation, which makes sense considering that people in Gen Z (ages 11-26) have had the least amount of time to rack up credit card debt.
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill? Well, that's not impossible either, though it is considerably less fun.
The total U.S. consumer debt balance increased to $17.1 trillion in 2023, up 4.4% from $16.38 trillion in 2022.
The average credit card balance among U.S. consumers was $6,501 as of Q3 2023, exactly 10% more than in Q3 2022.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
- People aged 40-49 hold the highest amount of debt with $4.21 trillion in total.
- By 2030, Millennials (born between 1981 to 1996) are expected to have the most total debt at an average of $228,891 per person.
Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.
| Generation | Average credit card debt |
|---|---|
| Baby boomers (58–76) | $6,245 |
| Generation X (42–57) | $8,134 |
| Millennials (26–41) | $5,649 |
| Generation Z (19–25) | $2,854 |
How many Americans are living on credit?
According to Federal Reserve data, over 45% of American families have credit card debt. Getting out of credit card debt quickly by making extra payments is a smart financial move.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.
Is $2,000 too much credit card debt? $2,000 in credit card debt is manageable if you can pay more than the minimum each month. If it's hard to keep up with the payments, then you'll need to make some financial changes, such as tightening up your spending or refinancing your debt.
“While it may feel counterintuitive, the main reason men have more credit card debt than women is that men continue to make more money than women for the same work,” said Lorraine Ell, CEO of the financial advisory firm Better Money Decisions.
At the end of September 2023, domestic creditors held 77 percent of the outstanding debt held by the public. Foreign creditors held the remaining 23 percent.
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.
Credit card debt in America continues to shatter records. When the Federal Reserve Bank of New York released its Household Debt and Credit Report for the second quarter of 2023, total credit card debt surpassed $1 trillion.
Gen X has the highest average debt balance in all categories, except for personal loans. Here's the breakdown: Credit cards: Gen X have the highest credit card balance compared to other age groups, at $8,215. Auto loans: Gen X have the highest auto loan balance, at $21,570.
The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.
Men have 2% more credit card debt than women. Men have 20% more personal loan debt than women. Men have 16.3% more auto loan debt than women. Men have 9.7% more mortgage debt than women.
How many people are 100% debt-free?
What percentage of America is debt-free? According to that same Experian study, less than 25% of American households are debt-free. This figure may be small for a variety of reasons, particularly because of the high number of home mortgages and auto loans many Americans have.
Nearly one in four (22%) of U.S. adults have no emergency savings at all, Bankrate found—the second-lowest percentage in 13 years of polling. That's especially bad news given that most Americans would need at least six months of emergency savings to feel comfortable day-to-day.
The World Happiness Report is out and Finland has once again been declared the happiest country in the world. However, the report reveals that Gen Z (aged 15-24) are unhappy.
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.
Generally speaking, a good debt-to-income ratio is anything less than or equal to 36%. Meanwhile, any ratio above 43% is considered too high. The biggest piece of your DTI ratio pie is bound to be your monthly mortgage payment.
