Americans currently hold record high levels of debt, and a large portion of that debt comes from credit cards. But how do credit card debt statistics break down per household and how many Americans are really in trouble?
This is what average credit card debt looks like in the U.S. You can use this information to compare your own situation and see how you stack up.
Credit Card Debt by State
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How much credit card debt do Americans really have?
This can be a tricky question to answer because it depends on how you calculate average debt. You’ll notice some of the statistics below seem to disagree. For instance, the average balance per household and per borrower that we provide below are different. But it depends on which households and borrowers you include.
Not all Americans use credit cards. In fact, only about seven out of ten Americans have at least one card.[1] And for those households that use credit cards, may pay off their balances in full every month. That means they don’t carry balances. Only about 41% of households carry credit card debt over from month to month.[2] So, average credit card debt will differ based on which Americans you include in the calculation. If you include all Americans, it drives the average balance down, because it includes both people who don’t use credit and those that don’t carry balances.
Credit card debt statistics for American households
- Total amount American consumers owe in credit card debt (2019) — $444 billion[3]
- The average amount owed by households that carry credit card debt (2019) — $6,849[3]
Credit card debt statistics per borrower
- Average credit card debt per borrower in 2018 — $9,333[2]
- Average credit card debt per borrower in 2017 — $10,821[2]
- Average credit card debt per borrower in 2016 — $11,184[2]
Credit card interest rate statistics
- Average national APR (annual percentage rate) on credit cards as of January 22, 2020 — 17.30%[4]
- Average rate on low-interest credit cards — 14.10%[4]
- Average penalty interest rate for credit cardholders who missed a payment — 26.11%[5]
Credit card debt for college students
- The average college student had 5 credit cards in 2019[6]
- Only 60% of college students pay the full balance of their bill every month[6]
- 22% of college students have paid a credit card bill late at least once[6]
- Average balance of a student’s credit card for the latest month was $1,423 in 2019[6]
- 23% of students replied “somewhat agree” or “strongly agree” to the statement that their credit card debts were out of control[6]
Other statistics related to unsecured debt
- Average payday loan amount — $350 on a two-week term[7]
- Average payday loan cost from storefront — $15 / $100 borrowed[8]
- For a two-week loan, this is an APR of 391%[8]
- Median online payday loan cost — $23.53 / $100 borrowed[8]
- For a two-week loan, this is an APR of 613%[8]
- Average auto title loan — Between $100 and $5,500[9]
Don’t let credit cards and other debts take control of your finance. Find solutions to regain stability.
Source:
[2] https://www.valuepenguin.com/average-credit-card-debt
[3] https://www.nerdwallet.com/blog/average-credit-card-debt-household/
[4] https://www.creditcards.com/credit-card-news/rate-report/
[5] https://wallethub.com/edu/cc/credit-card-interest-rates/52541/
[6] https://www.creditcards.com/credit-card-news/student-credit-debit-prepaid-statistics/
[7] https://www.experian.com/blogs/ask-experian/how-payday-loans-work/
[8] https://www.nerdwallet.com/blog/loans/what-is-a-payday-loan/
[9] https://www.consumer.ftc.gov/articles/0514-car-title-loans
[10] https://www.consumer.ftc.gov/articles/0514-car-title-loans
Article last modified on July 16, 2020. Published by Debt.com, LLC
