A credit card has become a mandatory portion of Americans’ total household debt.
According to the most recent U. S credit card debt and household data, consumers in the United States owe an enormous amount of Credit card debt reaching up to $841 billion in the first three months of 2022.
The credit card debt in the United States reached its all-time in 2019, hitting $930 billion in the fourth quarter of that year.
Although a slight drop was seen during the COVID-19 pandemic, total credit card balances in America rose by 9.2% from 2021 to 2022, and there’s a good chance that they will soon hit a new record high.
If you are also overwhelmed by credit card debt, learning about credit card statistics can help you review your situation better and decide on a strategy to get rid of your debt.
In this credit card debt statistics, we’ll be looking at the credit card statistics 2022 that will show you the way in darkness.
All the data presented in this article is taken from government agencies and credit bureaus.
Let’s dive right in!
Read: What Is Credit Card Refinancing Vs Debt Consolidation?
How Much Credit Card Debt Does Americans Have?
According to Experian, an average American has an average balance of $5,221 as of the third quarter of 2022.
Although it is still a lot, there’s a 1.8% decrease from 2020 and even lower as compared to the statistics before COVID-19.
Here is a list of credit card debt statistics from the year 2003 to 2022:
|Year||Credit Card Debt||Total Debt||Percentage of Total Debt|
|2003||$688 billion||$7.23 trillion||9.5%|
|2004||$695 billion||$8.29 trillion||8.4%|
|2005||$710 billion||$9.21 trillion||7.7%|
|2006||$723 billion||$10.38 trillion||7.0%|
|2007||$764 billion||$11.50 trillion||6.6%|
|2008||$837 billion||$12.54 trillion||6.7%|
|2009||$843 billion||$12.53 trillion||6.7%|
|2010||$762 billion||$12.12 trillion||6.3%|
|2011||$696 billion||$11.75 trillion||5.9%|
|2012||$679 billion||$11.44 trillion||5.9%|
|2013||$660 billion||$11.23 trillion||5.9%|
|2014||$659 billion||$11.65 trillion||5.7%|
|2015||$684 billion||$11.85 trillion||5.8%|
|2016||$712 billion||$12.25 trillion||5.8%|
|2017||$764 billion||$12.73 trillion||6.0%|
|2018||$815 billion||$13.21 trillion||6.2%|
|2019||$848 billion||$13.67 trillion||6.2%|
|2020||$893 billion||$14.20 trillion||6.2%|
|2021||$770 billion||$14.64 trillion||5.3%|
|2022||$841 billion||$15.84 trillion||5.3%|
Table 1: Statistics sourced from Federal Reserve Bank New York (2022)
What Is The Average Credit Card Debt By Age?
Credit card debt varies depending on age. On average, older adults tend to have more credit card debt than younger adults.
People in the age group younger than 35 have the lowest average credit card debt, while people 75 or older have the highest average credit card debt.
Around 52% of Americans between the ages of 45-54 are most likely to carry credit card debt.
Here are the average credit card statistics by age:
|Age Group||% Who Carry Credit Card Debt||Median Credit Card Debt||Average Credit Card Debt|
|35 or Younger||48%||$1,900||$3,700|
|35 to 44||51%||$2,600||$6,000|
|45 to 54||52%||$3,200||$7,700|
|55 to 64||47%||$3,000||$6,900|
|65 to 74||41%||$2,900||$7,000|
|75 or older||28%||$2,700||$8,100|
What Is The Average Credit Card Debt By Income?
Although people with higher income brackets tend to carry more credit card balances, the middle and upper-middle class has the highest credit card debt.
Americans in the 60th through the 79th income percentiles have credit card debt of approximately 56.8%.
People lying in the highest and lowest income percentiles are likely to carry balances on their credit cards. As per an estimate, less than a third of each group has credit card debt.
|Income Percentile||Median Yearly Income||Average Credit Card Debt||Percentage with Credit Card Debt|
What Is The Average Credit Card Debt By Ethnicity & Race?
As per data from the Federal Reserve’s Survey of Consumer Finances, non-Hispanic white Americans reported an average of $6,900 in credit card debt, which is the highest among all the groups surveyed.
On the other hand, black and African Americans recorded the lowest amount of credit card debt, with an average of $3,900 per cardholder.
|Ethnicity/Race||Median Credit Card Debt||Average Credit Card Debt||% Who holds the debt|
|Black or African Americans||$1,300||$3,900||48%|
|Latino or Hispanic||$1,900||$5,500||50%|
Which States Have The Highest Credit Card Debt?
Alaska, Connecticut, and Virginia are among the top 10 highest debt states Of 2022. Alaska leads the United States in credit card debt with an average debt of $6,617.
Here’s a list of states with the highest credit card debt as of 2022:
|State||Credit Card Debt|
|District of Columbia||$5,671|
Which States Have The Lowest Credit Card Debt?
According to LendingTree data, Midwest states like Iowa, Idaho, and Wisconsin rank in the top five states with the lowest average credit card balances.
Iowa tops the list with 27% less credit card debt than any state with a balance of $4,289, while Mississippi enjoys the lowest cost of living.
Check out the table below to see the list of lowest debt states in the U.S:
|State||Credit Card Debt|
How Many Americans Are Currently Delinquent with Their Credit Card Payments?
Any credit card account which is 30-days past the due date is considered delinquent, and the late payment record is added to the credit card holder’s report.
The record of delinquency is damaging to the credit scores of the cardholder and also carries serious financial penalties.
However, the consequences get worse as credit cards reach 60-90 days past the due date.
According to the latest delinquency data from the Federal Reserve, nearly 1.73% of credit card accounts are currently 30 days late with their payments.
The delinquency rate has increased from 1.63% to 1.73% in the first quarter of 2022. 4
Credit Card Debt By Education
Statistics show that although people with higher education degrees have more debt, their high income allows them to use credit cards less.
Here’s how the credit card debt for people with different education levels looks like
|Education||Median Debt||Average Debt||Average Percentage of Income|
|High School Graduate||$2,000||$4,940||11.74%|
|No High School Diploma||$1,200||$3,390||10.41%|
Average Interest Rates On New Credit Card Offers In The U.S.
|Category||Minimum APR||Maximum APR||Average||Previous month|
|Average APR for all new card offers||19.41%||26.42%||22.91%||22.40%|
|0% balance transfer cards||17.30%||26.38%||21.84%||21.27%|
|Cash back cards||19.29%||26.00%||22.64%||22.20%|
|Travel rewards cards||19.30%||26.99%||23.14%||22.51%|
|Hotel credit cards||19.10%||27.85%||23.48%||22.80%|
|Low-interest credit cards||13.31%||22.23%||17.77%||18.40%|
|Airline credit cards||19.83%||27.99%||23.91%||23.15%|
|Grocery rewards cards||19.22%||26.86%||23.04%||22.47%|
|Dining rewards cards||19.29%||27.05%||23.17%||22.55%|
|Gas rewards cards||19.41%||26.72%||23.07%||22.51%|
|Student credit cards||19.70%||25.13%||22.42%||21.89%|
|Secured credit cards||24.84%||24.84%||24.84%||24.36%|
Impact Of Rate Hikes On Credit Cards
Impact of Credit Cards
Credit cards can impact you both positively and negatively based on how you use them. Here’s how a credit card can impact you:
- Families: Paying your credit card bills on time can improve your credit score and can help you in enjoying many rewards. You can get easy loan approvals and low mortgage credit. Credit rewards can help you with large life goals like marriage or homeownership. The key is not to use your credit card for monthly expenses.
- Retirement: Credit card debt can push you away from your early retirement plan. Paying off your credit card debt or not accumulating it in the first place can help you start saving for your retirement plan.
- Personal goals: You can use credit cards for more fruitful causes. For aid early retirement, it helps people travel and check off items from their bucket lists. A good credit score and timely repayment can help you with this and not credit card debt.
Best Ways to Deal With Credit Card Debt
As we saw from the statistics shared above, a huge number of Americans owe credit card debt. If you are facing a similar problem, then here’s how you can get out of your credit card debt:
- Minimize your spending: This time, calculate all your expenses and see if there is anywhere where you can cut down on expenses. You can take the help of budgeting apps to keep track of your expenses and create budgets.
- Keep your credit card charges in check: Avoid using a credit card for every little purchase that you make. Use it when it is really necessary so that it does not add to your debt.
- Pay your bills on time: You know how much it will cost you to miss out on your monthly credit card bills. Try not to miss out on these payments at all costs.
- Go for debt consolidation loans: Debt consolidation loans have a lower interest rate as compared to credit cards, and they also have fixed lengths and payment amounts. Opting for this can help you avoid credit card debt that comes with no structure. 6
Credit card spending has increased over the years, and its usage for every little monthly payment has led to credit card debt among users.
The only way to curb credit card debt is by getting more mindful of your daily expenses and by repaying the debt on time.
In this article on Credit Card Debt Statistics 2023, we shared credit card debt statistics concerning different sections and categories. We hope you found this useful.
Do Americans hold a lot of credit card debt?
According to federal reserve data, Americans owe $925 billion in credit card debt in total. So yes, Americans have a lot of credit card debt.
What percentage of Americans do not owe any debt?
Less than 25% of Americans are debt free. The reason for this is a high number of people take car loans, home loans, student education loans, etc. and are unable to pay them on time.
What does it mean by living paycheck to paycheck?
Living paycheck to paycheck simply means that all your money comes in and goes out the same month without you being able to save.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.
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