How much is the average person in credit card debt?
Overall, the national average card debt among cardholders with unpaid balances in Q3 2024 was $7,236, up from $7,130 in Q2. That includes debt from bank cards and retail credit cards. Six states spread throughout the nation have average balances of at least $9,000.
Average American Credit Card Debt
The Federal Reserve study does not provide numbers for the average credit card balance per consumer. However, according to TransUnion, this figure rose from $6,380 in the third quarter of 2024 to $6,580 in the fourth quarter of 2024.
If you owe 20k in debt on credit cards, the average interest on most cards is roughly 25%. You're gonna be paying an extra 5k on that 20k minimum. Loan officers are gonna see that and not be happy. You'll be paying a few extra hundred a month.
$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.
The average American household has over $6,000 in credit card debt, which can be a challenging amount to manage. If you're just making minimum payments, expect to stay in credit card debt for many years – about 25 years on $6,000, by our calculations.
Here's a look at how much nonmortgage debt Americans have by age group, and the average non-mortgage per capita debt for each group: 18-29-year-olds: $69 billion total, $12,871 average. 30-39-year-olds: $1.17 trillion, $26,532 average.
Across all states, Americans spend an average of just over $5,200 per month on their credit cards. Which states have the highest credit card spending?
Gen Z carries the highest average personal debt, at $94,101—far above millennials ($59,181) and Gen X ($53,255). The data reflects a troubling reality: Younger adults are struggling under the weight of financial pressures.
To minimize the negative impact credit card debt can have on your score, author and credit expert Beverly Harzog recommends keeping your utilization ratio below 30%. So, for instance, if you have two credit cards, each with a $10,000 credit limit, your total debt across both cards shouldn't exceed $6,000.
| Age Group | Average Debt | Delinquency Rate |
|---|---|---|
| 18-25 | $8,085 | 1.80% |
| 26-35 | $17,1917 | 1.95% |
| 36-45 | $26,459 | 1.58% |
| 46-55 | $33,391 | 1.18% |
How long will it take to pay off $20,000 in credit card debt?
If you only make the minimum payment each month, which is typically around 1% of the balance plus interest, here's what you can expect: Time to pay off: Approximately 421 months.
A minimum credit score of 670 to 739 is typically required for a $20,000 personal loan. Proof of steady income, including pay stubs, tax returns, and bank statements, is essential. Applicants must be at least 18 years old and legal U.S. citizens. A debt-to-income ratio below 36% enhances loan approval chances.
For example, a general rule of thumb is if roughly half of your monthly income is committed to debt payments, there's a good chance you have too much debt. Your debt-to-income ratio (DTI) is a reliable benchmark for evaluating the health of your personal indebtedness.
- Create a budget and track your income and spending. ...
- Be mindful of debt fatigue. ...
- Prioritize paying high-interest debt first. ...
- Get a higher-paying new job. ...
- Freelance on the side. ...
- Negotiate with your credit card companies and other creditors.
Some indicators of too much credit card debt include accruing too much interest, having difficulty paying your other bills and carrying a balance that's close to your credit limit. There isn't a specific amount of credit card debt that's considered too much.
That's a record high. According to Experian, average total consumer household debt in 2024 is $105,056. That's up 13% from 2020, when average total consumer debt was $92,727.
A good credit score typically falls in the mid-600s to mid-700s on the commonly used 300-850 credit score range. Scores in the high 700s and above are generally considered excellent, while scores in the low 600s to mid-500s are considered fair. Scores between 300 to low 500s fall into the bad credit score range.
Now that we've defined debt-to-income ratio, let's figure out what yours means. 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.
Despite their young age, the overwhelming majority of Generation Zers have some type of debt, according to a new analysis from online marketplace LendingTree. Among Gen Zers living in the 100 largest metropolitan areas, the median percentage with nonmortgage debt is just over 97 percent, the analysis found.
That amount of card debt is substantial, especially at today's high rates, and getting rid of it requires patience, discipline and a solid strategy. The good news is, though, that there are many debt relief options to choose from — in addition to the traditional payoff methods.
What is the average credit score by age?
Less wealthy Americans are more likely to have one credit card (36%) than rich Americans (22%). Rich Americans are more likely to have two, three, and four or more credit cards than Americans who are worth less than $1 million.
- Excuse #1: I don't have enough money to pay all my bills. ...
- Excuse #2: I'm too busy to remember when they're due. ...
- Excuse #3: I can't find the bill. ...
- Excuse #4: I have so many bills, I can't keep track.
Keep Your Balance Below 30%
The rule of thumb is to keep your credit card balance below 30% of your total available credit. If your credit limit is $2,000, you should aim to keep your balance below $600. This shows lenders that you're responsible and not over-relying on credit.
Total debt by age group in the U.S.
People aged 50-59 have the most credit card debt in total at $0.21 trillion, and people aged 30-39 have the most student loan debt at $0.5 trillion.
