What is the average American credit card debt per household?

American households have an average credit card debt of $6270, according to the Federal Reserve’s Survey of Consumer Finances. On the other hand, the total average household debt stood at $155,038 at the start of the pandemic. 

Over three-quarters of all American households are in some state of debt. In terms of debt type, credit card debt is the most common, followed by mortgages and auto loans.

Credit card debt, car loans and mortgage debt make up nearly half of all households. Thirty-five percent of those surveyed said that credit card debt was causing them stress.

How much credit card debt does the average American household have?

The average credit card debt in American households was $6270, while the median credit card debt was $2700. As a result, the average annual interest bill for credit card debtors in the United States is $1,029 this year.

The average total household debt has climbed by 3.3 percent from the start of the Covid-19 epidemic, reaching $155,038 in 2020. Furthermore, Americans owe $807 billion on nearly 506 million credit card accounts.

Over the last two years, the median household income has fallen by 3% while the general cost of living has risen by 7%. This is a striking departure from a decade-long pattern in which income growth outpaced inflation, while earnings are still ahead of the cost of living if the decade beginning in 2011 is taken into account.

Even after accounting for inflation, the typical American household’s credit card amount has increased by more than 80% since 1990.

What is the average credit card bill for a family of four?

The average monthly credit card charge for a family of four is $125.4, based on the average minimum payment percentage of 2%.

If no new purchases are made, the average person will take more than six years to pay off their credit card debt.

Even after accounting for inflation, the average credit card amount of American households has increased by more than 80% since 1990.

How much credit card debt does the average individual have?

In the United States, the average credit card debt is $5,525.

This is still a substantial number, but it has already decreased in the last two years. In 2019, it was $6,629, and in 2020, it was $5,897. This data is derived from Experian’s annual State of Credit reports.

The majority of Americans do not pay off their credit card debt in full each month, with 55% of those polled reporting that they do not usually make the minimum payment.

Alaska had the greatest average credit card debt per person ($6,617), while Iowa had the lowest ($4,289).

What is the average monthly credit card debt?

The average monthly credit card debt for an ordinary American is roughly $420. The average credit debt each month for a US household, on the other hand, comes to $522.5.

Americans owe $807 billion on roughly 506 million credit card accounts, according to the Federal Reserve. Despite this, Americans had $71 billion less debt than the previous high established in the fourth quarter of 2019, when credit card balances were $927 billion.

Credit card debt in America, meanwhile, remains high by historical standards. It is also significantly higher than the $478 billion recorded in the first quarter of 1999, 21 years earlier.

How many people in the United States have credit card debt?

Americans have 506 million credit card accounts, with a total debt of $807 billion. Approximately 95% of adult Americans have a credit card in their name.

According to a new survey by the financial resource GOBankingRates, 6% of Americans, or 14 million people, have credit card debts of at least $10,000.

A third of those polled have debts ranging from $1,000 to $5,000, and another 15% have credit card bills of $5,000 or more.

75% of cardholders have a balance greater than $0, with an average balance of $5525.

How Has the Pandemic Affected Credit Card Debt in the United States?

Consumer debt for individuals fell from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance fell in every state.

The coronavirus epidemic in 2020 reduced both outstanding credit card debt and issuer credit limits. These balance reductions have been ascribed to lower quarantine spending as well as a combination of economic impact payments and greater jobless compensation.

Credit card limits were reduced for 34% of consumers at the outset of the crisis to assist banks in avoiding losses in uncertain economic times.

In conclusion

So this was all about how much credit card debt the average American household carries. Credit card debt suffered during the pandemic as a result of reduced expenditure and lockdowns. It was, however, hiked again in 2021. Even the entire debt owed by Americans is large, at $807 billion. This large sum will undoubtedly take a long time to repay.

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