KEY POINTS
- Record credit card debt: U.S. consumers owe a record $1.142 trillion on credit cards as of Q2 2024.
- Average debt rising: The average American credit card debt is $6,501 in 2023, up 10% from 2022.
- State debt variations: Alaska has the highest average credit card debt at $7,863, while Kansas has the lowest at $5,227.
Key findings are powered by ChatGPT and based solely off the content from this article. They are reviewed by Jack Caporal, our research director. The author and editors take ultimate responsibility for the content.
At first glance, credit card debt numbers in the United States look enormous. Consumers owe a record $1.142 trillion on their credit cards, and the average American credit card debt balance is $6,501.
We've reviewed research from government agencies and credit bureaus to get the most up-to-date data on U.S. credit card debt. Keep reading for the latest credit card debt statistics.
Average credit card debt
How much credit card debt does the average American have? The average balance is $6,501 as of the third quarter of 2023, according to Experian.
That's a 10% increase from 2022 and the first time average credit card debt has exceeded $6,000 since 2019.
| Year | Average credit card debt |
|---|---|
| 2019 | $6,194 |
| 2020 | $5,315 |
| 2021 | $5,221 |
| 2022 | $5,910 |
| 2023 | $6,501 |
Data source: Experian (2023).
Total credit card debt
Total U.S. credit card debt reached an all-time high in the second quarter of 2024, reaching $1.142 trillion. While credit card debt fluctuated during the pandemic, it began to steadily rise in 2021 as inflation took off.
Over the last decade, credit card debt has typically accounted for between 5.5% to 6.5% of household debt.
What is the average American credit card debt per household?
The average American household has about $8,689 in credit card debt, based on the most recent U.S. credit card debt and household data.
Average credit card debt per household was calculated by dividing U.S. credit card debt in the second quarter of 2024 ($1.142 trillion) by the most recent data on the number of households, taken in 2023 (131.434 million).
Average credit card debt by state
Alaska has $7,863 in average credit card debt, more than any other state. Kansas and Wisconsin have the smallest average balances at $5,227 and $5,242.
Credit card debt numbers vary quite a bit by state. Here's a full list of each state's average credit card balance as of 2023.
States with the highest credit card debt
- Alaska: $7,863
- Florida: $7,548
- New Mexico: $7,401
- Connecticut: $7,381
- Massachusetts: $7,282
States with the lowest credit card debt
- Kansas: $5,227
- Wisconsin: $5,242
- Louisiana: $5,304
- West Virginia: $5,348
- Missouri: $5,415
Average credit utilization rate
The average credit utilization rate is 29% as of 2023, an increase of 1% from 2022 and 3.5% from 2021.
This metric, also known as a credit utilization ratio, is your credit card balances divided by your credit limits. If you have one credit card with a $1,000 balance and a $10,000 credit limit, then your credit utilization would be 10%.
| Year | Average credit utilization rate |
|---|---|
| 2020 | 25.4% |
| 2021 | 25.5% |
| 2022 | 28.0% |
| 2023 | 29.0% |
Date source: Experian (2023).
Lower credit utilization is better for your credit score. The conventional wisdom is that you should keep it below 30%, so consumers are doing well managing their credit cards.
Average credit card interest rates
The average credit card APR on interest-bearing accounts is 22.63% as of the first quarter of 2024. Credit card interest rates have risen quickly since 2021, as the Federal Reserve hiked interest rates.
Interest-bearing accounts include all credit cards that charge interest. It excludes credit cards that aren't charging interest at that time, so 0% intro APR credit cards don't count until the introductory period ends.
Credit card interest makes up a significant chunk of card issuers' earnings. Interest rates have shot up since 2021 from 15.91% in the first quarter of that year to 22.63% in the first quarter of this year.
READ MORE: How Does Credit Card Interest Work?
Credit card delinquency rates
Data from the Federal Reserve shows credit card delinquencies on the rise, with the delinquency transition rate reaching 9.1% in the second quarter of 2024. That means 9.1% of credit card balances transitioned into delinquency in the last year.
The credit card delinquency transition rate is up from 8.93% in the last quarter and up from 7.2% in the second quarter of 2023.
Average credit card debt by income
Americans in higher income brackets carry higher credit card balances on average.
However, it's the middle class and the upper middle class that are more likely to have credit card debt. Among Americans in the 60th through 79th income percentiles, 54% have credit card debt. Those in the 40th through 59th income percentile are more likely to have credit card debt, as 57% carry a balance on their card.
It's the Americans in the highest (90th to 100th) and lowest (under 20th) income percentiles who are least likely to carry balances on their credit cards. A third of Americans in the lowest income percentile carry credit card debt, while a quarter of those in the highest income percentile have credit card debt.
| Income percentile | Median annual income | Median credit card debt | Average credit card debt | Percentage with credit card debt |
|---|---|---|---|---|
| Less than 20% | $20,540 | $1,400 | $3,630 | 33.40% |
| 20% to 39% | $43,240 | $1,600 | $3,840 | 46.40% |
| 40% to 59% | $70,260 | $2,500 | $5,950 | 56.90% |
| 60% to 79% | $115,660 | $3,500 | $7,440 | 54.40% |
| 80% to 89% | $189,160 | $5,000 | $8,900 | 44.60% |
| 90% to 100% | $390,210 | $6,000 | $11,210 | 25.40% |
| All families | $70,260 | $2,700 | $6,120 | 45.20% |
Data source: Federal Reserve Survey of Consumer Finances (2023).
Average credit card debt by race
White Americans have average credit card debt of $6,930 and a median credit card balance of $3,000, the most of any racial identity/ethnicity.
Hispanic Americans have the lowest average credit card debt at $4,150, and both Hispanic and Black Americans share the lowest median credit card debt at $1,700.
| Race/ethnicity | White, non-Hispanic | Black, non-Hispanic | Hispanic | Other | All families |
|---|---|---|---|---|---|
| Median credit card debt | $3,000 | $1,700 | $1,700 | $2,970 | $6,000 |
| Average credit card debt | $6,930 | $4,360 | $4,150 | $5,910 | $11,210 |
| Percent holding credit card debt | 42.20% | 56.30% | 55.80% | 43.30% | 45.20% |
Data source: Federal Reserve Survey of Consumer Finances (2023).
Average credit card debt by age
Generation X carries the highest average credit card balance at $8,870. That's over $1,000 more than baby boomers, who came in second with an average balance of $6,601.
The lowest average credit card debt by age was Generation Z with $3,148. Since young adults have lower incomes on average, they also have a lower average credit limit, which at least helps with avoiding credit card debt.
| Generation | 2022 | 2023 |
|---|---|---|
| Generation Z | $2,692 | $3,148 |
| Millennials | $5,309 | $6,274 |
| Generation X | $7,781 | $8,870 |
| Baby boomers | $6,134 | $6,601 |
| Silent generation | $3,305 | $3,434 |
Data source: Experian (2023).
Recent trends in credit card debt
Credit card debt has reached $1.142 trillion in America. Credit card debt rose in 7 out of the last 10 quarters, from the first quarter of 2022 to the second quarter of 2024, and now accounts for over 6.4% of all debt held by Americans.
Credit card delinquency rates have risen despite rising interest rates -- a sign that Americans are still leaning on their credit cards to cope with inflation.
Even as credit card debt and delinquencies rose in 2023, the average FICO® Score rose to 716.
Credit card utilization inched up closer to 30% -- combined with rising delinquency rates, this could be a worrisome sign about just how much consumers are relying on credit.
How to get out of credit card debt
As we've seen from these statistics, owing money to your credit card issuer is common. Many American credit card holders have expensive balances that are costing them interest charges every month.
If you're in this situation, here are some methods to consider that can help you get out of credit card debt:
- Keep your credit card charges to a minimum. Either don't use credit or only use it for necessary expenses so you don't add to your debt. Since this is revolving debt, it's hard to get rid of if you continue using your credit cards.
- Cut spending where you can. Look at your recent spending, see if there's anywhere you can cut back, and make a budget that you can use going forward. There are several budgeting apps that can help here.
- Consider a balance transfer credit card if you have good credit. Balance transfer credit cards offer a 0% intro APR on credit card debt you transfer over. Although card issuers cut down on these offers at the start of the pandemic, there are now plenty of quality balance transfer cards available, and they're the best credit card option for paying off debt.
- Look into debt consolidation loans. Debt consolidation loans typically have lower interest rates than most credit cards (excluding the 0% intro APR certain cards offer on purchases and/or balance transfers). They also have a fixed payment amount and length, which can provide the structure needed to eliminate credit card debt.
- Explore other options if you can't make your monthly payments. You may be able to negotiate with your credit card issuer to lower your interest rate or monthly payment amount. Another option is to look into nonprofit organizations that offer credit counseling or a credit card hardship program.
Sources
- Experian (2023). "Average Credit Card Balances up 13.2% to $5,910 in 2022."
- Experian (2024). "Experian 2023 Consumer Credit Review."
- Federal Reserve (2024). "Commercial Bank Interest Rate on Credit Card Plans, Accounts Assessed Interest-Federal Funds Effective Rate."
- Federal Reserve (2024). "Quarterly Report on Household Debt and Credit."
- Federal Reserve (2023). "Survey of Consumer Finances."
