What Is the Average Family Credit Card Debt in 2010
Average American Credit Menu Debt in 2021: $5,525
Image source: Getty Images
According to the virtually recent research, the average American credit card debt is $v,525. The average carte balance has decreased past $968 from where it was before the COVID-nineteen pandemic, and the full U.South. credit card debt has also gone downwardly to $787 billion.
While those are the overall numbers, they vary significantly for different demographics. We've reviewed data from government agencies and credit bureaus to observe the average credit card debt by state, age, income, and much more. Proceed reading for the full results.
Central findings
- Average American credit carte debt: $5,525
- Boilerplate credit utilization rate: 25.ii%
- State with the highest average credit card debt: Alaska ($7,089)
- State with the lowest average credit bill of fare debt: Wisconsin ($4,587)
- Generation Ten has average credit carte debt of $seven,236, the nearly of any generation.
- Higher income corresponds to college average credit carte du jour balances, only consumers in the middle income brackets are the most likely to take credit card debt.
- Credit bill of fare interest rates have been rising, and the average rate is now 16.2% on interest-bearing accounts.
- Delinquency rates have been steadily decreasing, with the charge per unit of delinquencies of 90 days or more falling the most.
- The average credit carte du jour balance has dropped by $968 since before the COVID-19 pandemic.
Average American credit bill of fare debt
The average American has a credit menu balance of $five,525.
Although that's a large amount, it has been dropping over the last two years. The average residuum was $6,629 in 2019 and $five,897 in 2020. That information comes from Experian and its yearly State of Credit reports.
U.S. credit card debt as a whole reached an all-fourth dimension high in 2019. Since peaking at $930 billion in the 4th quarter of that year, it has fallen past over 15%, fifty-fifty though the total U.S. debt has kept going up.
| Year | Credit card debt | Total debt | Credit card debt percentage |
|---|---|---|---|
| 2003 | $693 billion | $vii.38 trillion | 9.4% |
| 2004 | $697 billion | $eight.46 trillion | 8.two% |
| 2005 | $697 billion | $9.47 trillion | 7.4% |
| 2006 | $739 billion | $10.75 trillion | 6.9% |
| 2007 | $796 billion | $eleven.85 trillion | 6.vii% |
| 2008 | $850 billion | $12.60 trillion | 6.seven% |
| 2009 | $824 billion | $12.twoscore trillion | half dozen.6% |
| 2010 | $744 billion | $xi.94 trillion | half dozen.2% |
| 2011 | $694 billion | $11.73 trillion | 5.9% |
| 2012 | $668 billion | $11.38 trillion | 5.9% |
| 2013 | $669 billion | $eleven.15 trillion | 6.0% |
| 2014 | $669 billion | $11.63 trillion | 5.8% |
| 2015 | $703 billion | $11.85 trillion | 5.ix% |
| 2016 | $729 billion | $12.29 trillion | 5.9% |
| 2017 | $784 billion | $12.84 trillion | 6.ane% |
| 2018 | $829 billion | $thirteen.29 trillion | half-dozen.2% |
| 2019 | $868 billion | $xiii.86 trillion | vi.3% |
| 2020 | $817 billion | $14.27 trillion | five.7% |
| 2021 | $787 billion | $14.96 trillion | v.iii% |
Information source: Federal Reserve Bank of New York (2021). Debt statistics are from the 2nd quarter of each year.
While it has been a very gradual change, credit card debt has become a smaller portion of Americans' full household debt.
What is the average American credit bill of fare debt per household?
The average American credit menu debt per household is well-nigh $6,125, based on the most recent U.S. credit card debt and household information.
Average credit card debt per household was calculated by dividing U.S. credit card debt in 2021 ($787 billion) by the most recent number of households taken in 2020 (128.45 million).
Average credit card debt by state
Credit carte debt numbers vary quite a bit by land. Hither's a full list of each state'due south average credit card rest equally of 2021.
| State | Average credit card debt |
|---|---|
| Alabama | $5,258 |
| Alaska | $7,089 |
| Arkansas | $4,964 |
| Arizona | $five,414 |
| California | $5,635 |
| Colorado | $five,909 |
| Connecticut | $6,237 |
| Delaware | $v,581 |
| Florida | $five,748 |
| Georgia | $5,822 |
| Hawaii | $six,197 |
| Idaho | $5,025 |
| Illinois | $five,552 |
| Indiana | $4,796 |
| Iowa | $4,587 |
| Kansas | $v,308 |
| Kentucky | $iv,772 |
| Louisiana | $five,355 |
| Maine | $4,950 |
| Maryland | $6,164 |
| Massachusetts | $v,448 |
| Michigan | $4,850 |
| Minnesota | $5,115 |
| Mississippi | $4,819 |
| Missouri | $5,117 |
| Montana | $5,223 |
| Nebraska | $4,985 |
| Nevada | $5,651 |
| New Hampshire | $5,496 |
| New Jersey | $6,115 |
| New Mexico | $5,203 |
| New York | $5,754 |
| N Carolina | $5,361 |
| North Dakota | $5,223 |
| Ohio | $iv,968 |
| Oklahoma | $5,571 |
| Oregon | $5,124 |
| Pennsylvania | $5,293 |
| Rhode Island | $5,324 |
| South Carolina | $5,523 |
| Due south Dakota | $five,007 |
| Tennessee | $5,234 |
| Texas | $6,033 |
| Utah | $5,233 |
| Vermont | $4,963 |
| Virginia | $six,189 |
| Washington | $v,684 |
| Washington, D.C. | $half-dozen,367 |
| W Virginia | $4,831 |
| Wisconsin | $4,587 |
| Wyoming | $v,584 |
Data source: Experian (email communication, 2021).
States with the highest credit card debt
Alaska has had the highest credit card debt in recent years, and in 2021, it was 28% more than the national average.
- Alaska: $vii,089
- Washington, D.C.: $half dozen,367
- Connecticut: $6,237
- Hawaii: $6,197
- Virginia: $half-dozen,189
States with the lowest credit card debt
Wisconsin and Iowa both accept 17% less credit carte debt than the national average, simply it'southward Wisconsin that'due south the official winner. Earlier rounding off, its boilerplate credit card debt vanquish Iowa's by a razor-thin margin of $0.08.
- Wisconsin: $4,587
- Iowa: $4,587
- Kentucky: $four,772
- Indiana: $4,796
- Mississippi: $four,819
Boilerplate credit card debt by age
Generation X carries the highest average credit carte du jour balance at $vii,236. That's over $1,000 more than than baby boomers, who came in second with an boilerplate balance of $6,230.
The lowest average credit bill of fare debt by age was Generation Z with $2,312. Since young adults have lower incomes on average, they also take a lower boilerplate credit limit, which at least helps with avoiding credit card debt.
| Generation | Boilerplate credit bill of fare debt |
|---|---|
| Generation Z | $two,312 |
| Millennials | $four,569 |
| Generation X | $7,236 |
| Baby Boomers | $vi,230 |
| Silent Generation | $3,821 |
Data source: Experian (2021).
Average credit bill of fare debt for college students
College students have an average credit menu debt of $ane,183.
Because students are oft on a tight budget, their credit menu balances are much lower than the boilerplate. Even though that's a good sign, a lower-than-average balance tin can all the same be difficult to pay off when yous take a express income.
| Year | Average credit carte debt, higher students |
|---|---|
| 2016 | $903 |
| 2019 | $1,183 |
Data source: Sallie Mae (2019).
Average credit card debt by income
Americans in higher income brackets comport higher credit card balances on boilerplate.
Withal, it'southward the eye class and the upper-center course that's more than likely to accept credit bill of fare debt. Among Americans in the 60th through 79th income percentiles, 56.8% have credit card debt. Those in the 40th through 59th income percentile weren't far behind, equally 55% have credit card debt.
Information technology's the Americans in the highest (90th to 100th) and everyman (under 20th) income percentiles who are to the lowest degree likely to conduct a rest. Less than a third of each group has credit carte du jour debt.
| Income percentile | Median annual income | Boilerplate credit card debt | Pct with credit card debt |
|---|---|---|---|
| Less than twenty | $sixteen,290 | $three,830 | 30.5% |
| twenty–39 | $35,630 | $4,650 | 45.6% |
| forty–59 | $59,050 | $4,910 | 55.0% |
| 60–79 | $95,700 | $vi,990 | 56.8% |
| 80–89 | $151,700 | $9,780 | 45.9% |
| 90–100 | $290,160 | $12,600 | 32.two% |
Data source: Federal Reserve Survey of Consumer Finances (2020).
Editor'south note: Information from the Survey of Consumer Finances was collected in 2019, and is the most recent available from the Federal Reserve.
Average credit menu debt by level of education
Average credit card debt is higher for Americans with higher levels of education.
Higher graduates take the highest average credit carte debt at $7,940. On the other hand, those with no high schoolhouse diploma have $3,390 in boilerplate credit card debt.
The most reasonable explanation for this is each group's respective income. Median income increases at each level of education. Every bit an example, Americans with a available's caste earn over twice as much as Americans with no high school diploma. Higher income, as we saw earlier, corresponds to college credit card debt.
| Educational attainment | Average credit carte debt |
|---|---|
| College degree | $7,940 |
| Some college | $vi,210 |
| High school diploma | $four,940 |
| No high school diploma | $three,390 |
| All families | $6,270 |
Data source: Federal Reserve Survey of Consumer Finances (2020).
Average credit card debt by race
White Americans have boilerplate credit carte du jour debt of $6,940, the most of any racial group.
Black Americans have the everyman average credit bill of fare debt at $3,940, and Hispanic Americans are right in between those ii other groups with $5,510 in average credit carte debt.
| Race/ethnicity | Average credit card debt |
|---|---|
| White, non-Hispanic | $6,940 |
| Blackness, non-Hispanic | $3,940 |
| Hispanic | $five,510 |
| Other | $half-dozen,320 |
| All families | $half-dozen,270 |
Information source: Federal Reserve Survey of Consumer Finances (2020).
Average credit card interest rates
The average credit carte Apr on interest-bearing accounts is 16.2%.
Involvement-bearing accounts include all credit cards that charge interest. It excludes credit cards that aren't charging interest at that time, so 0% intro April credit cards don't count until the introductory catamenia ends.
| Year | Average (interest-bearing) credit card interest rate |
|---|---|
| 2017 | 13.i% |
| 2018 | 13.viii% |
| 2019 | 14.7% |
| 2020 | 15.7% |
| 2021 | 16.2% |
Data source: Lath of Governors of the Federal Reserve System (2021). Interest rate statistics are from the 2d quarter of each yr.
Credit card interest rates take been steadily increasing at a charge per unit of nearly 0.8% per year since 2017. They slowed down a bit this last yr, when they grew by 0.5%.
Involvement income makes up a meaning clamper of credit menu company earnings. It was 43% of the $176 billion credit bill of fare companies made in 2020.
Credit carte malversation rates
A credit card business relationship is considered delinquent when it'south at least 30 days by due. Although that already does significant harm to the cardholder'southward credit score and carries financial penalties, the consequences get worse equally the menu passes 60 and 90 days past due.
Credit card malversation rates accept fallen over the past two years. Delinquencies of xc days or more have seen the best results, as they're down 63%.
| Days past due | 2019 | 2020 | 2021 |
|---|---|---|---|
| 30–59 | three.9% | 2.4% | 2.three% |
| 60–89 | 1.9% | 1.iii% | 1.0% |
| 90 or more | 6.8% | 3.8% | 2.v% |
Data source: Experian (2020).
Credit card delinquency rates past generation
Millennials and Generation 10 accept the highest credit card delinquency rates by a large margin in 2021. Members of the Silent Generation are the least probable to exist delinquent on their credit cards.
| Generation | 30–59 days | sixty–89 days | xc or more days |
|---|---|---|---|
| Generation Z | 2.12% | 0.95% | one.73% |
| Millennials | 3.07% | ane.32% | 3.15% |
| Generation X | 3.02% | ane.25% | 3.42% |
| Babe Boomers | 1.80% | 0.77% | ii.05% |
| Silent Generation | ane.07% | 0.51% | 1.33% |
Data source: Experian (2021).
Boilerplate credit utilization charge per unit by age
The average credit utilization rate is 25.2%.
This metric, as well known equally a credit utilization ratio, is your credit bill of fare balances divided by your credit limits. If you accept one credit card with a $ane,000 residual and a $10,000 credit limit, so your credit utilization would be 10%.
Lower credit utilization is better for your credit score, and the conventional wisdom is that you should keep information technology below xxx%. Most generations manage that. While Gen Z, millennials, and Gen X all accept averages of around 30%, the average credit utilization drops quite a bit for infant boomers and the Silent Generation.
| Generation | Average credit utilization |
|---|---|
| Generation Z | 31.1% |
| Millennials | thirty.2% |
| Generation 10 | 29.7% |
| Babe boomers | 21.iv% |
| Silent Generation | 12.half-dozen% |
| U.South. Boilerplate | 25.2% |
Data source: Experian (2020).
How the COVID-nineteen pandemic affected credit card debt
Since the early on stages of the COVID-19 pandemic, credit card balances have declined sharply. The average credit carte du jour balance was almost xiii% lower in March 2021 than information technology was the yr before, according to a study past the Consumer Financial Protection Bureau.
The boilerplate credit card residue of $5,525 reported past Experian is a subtract of $968 from where it was prior to COVID-19.
Delinquency rates have too declined. The assistance programs that credit card companies offered during the pandemic may take played a function in helping cardholders avoid delinquencies. In April 2020, 2% of open credit menu accounts started reporting assistance.
Virtually cardholders didn't need aid programs for long. About 0.eight% of credit card accounts transitioned out of assistance in May 2020, and another 1.1% of accounts transitioned out in June 2020.
How to become out of credit card debt
As we've seen from these credit carte debt statistics, attributable coin to credit card companies is a very common issue. Many Americans have expensive credit card balances that are costing them interest every month.
If yous're in this situation, here are some methods to consider that can assistance you get out of credit bill of fare debt:
- Keep your credit card charges to a minimum. Either don't use credit or simply use information technology for necessary expenses so yous don't add to your debt.
- Cut spending where you tin can. Expect at your recent spending, see if in that location'due south anywhere you tin cutting back, and brand a upkeep that you can use going forward. There are several budgeting apps that can help here. Put as much disposable income as possible towards your credit carte du jour payments.
- Look into balance transfer credit cards and debt consolidation loans. These are both financial tools that you tin can use to pay off debt. Balance transfer credit cards offer a 0% intro APR on credit card debt you lot transfer over. Debt consolidation loans typically have lower interest rates than most credit cards. They also have a fixed payment corporeality and length, which tin provide the structure needed to eliminate credit bill of fare debt.
Sources
- Board of Governors of the Federal Reserve System (2021). "Commercial Bank Interest Charge per unit on Credit Card Plans, Accounts Assessed Interest-Federal Funds Effective Rate."
- Consumer Fiscal Protection Agency (2021). "Credit carte du jour utilise is all the same failing compared to pre-pandemic levels."
- Consumer Financial Protection Bureau (2020). "The Early Effects of the COVID-xix Pandemic on Consumer Credit."
- Experian (2020). "Credit Card Debt in 2020: Balances Drib for the First Time in 8 Years."
- Experian (2020). "State of Credit 2020."
- Experian (2021). "State of Credit 2021."
- Federal Reserve Banking company of New York (2021). "Quarterly Report on Household Debt and Credit."
- Federal Reserve Survey of Consumer Finances (2021). "2019 Survey of Consumer Finances (SCF)."
- Sallie Mae (2019). "Majoring in Money 2019."
Source: https://www.fool.com/the-ascent/research/credit-card-debt-statistics/
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