Credit card debt is an issue that affects millions of Americans and can lead to long-term financial problems. This article takes an in-depth look at credit card debt and how it affects different demographics in the U.S., as well as how this type of debt has changed over time.
The U.S. currently has $986 billion in total credit card debt as of Q4 2022. Credit card balances increased by $61 billion compared to the previous quarter, overtaking the pre-pandemic high of $927 billion. [1] Total Credit Card Debt in the U.S. https://www.newyorkfed.org/microeconomics/hhdc
How to Get a Credit Card with No Credit
It’s possible to get a credit card with no credit, but you need to know which types of accounts to apply for (and which applications to avoid as well).
Download our guideSince 1989, figures surrounding credit card debt in the U.S. have fluctuated. Using average figures for all families, credit card balances maintained a steady increase from 1989 ($3,760) to 2007 when the average amount of debt peaked at $9,050 during the financial crisis. Since that year, credit card debt per family declined quite steeply to $6,290 in 2013 and remained fairly consistent until 2019.
The percentage of families holding credit card debt peaked at 47.3% in 1995 and remained steady until after 2007 when it began to decrease, eventually dipping to a low of 38.1% in 2013. Since then, the figure has climbed back up, with the latest data showing 45.4% of families holding credit card debt as of the Federal Reserve’s 2019 Consumer Finance Survey.
| Year | Credit Card Balances |
|---|---|
| 1989 | $3,760 |
| 1992 | $4,140 |
| 1995 | $4,990 |
| 1998 | $6,480 |
| 2001 | $5,980 |
| 2004 | $6,960 |
| 2007 | $9,050 |
| 2010 | $8,340 |
| 2013 | $6,290 |
| 2016 | $6,070 |
| 2019 | $6,270 |
Source [2] Federal Reserve Credit Card Debt https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:all;population:1;units:mean
| Year | Percentage Holding Debt |
|---|---|
| 1989 | 39.70% |
| 1992 | 43.70% |
| 1995 | 47.30% |
| 1998 | 44.10% |
| 2001 | 44.40% |
| 2004 | 46.20% |
| 2007 | 46.10% |
| 2010 | 39.40% |
| 2013 | 38.10% |
| 2016 | 43.90% |
| 2019 | 45.40% |
Source [2] Federal Reserve Credit Card Debt https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:all;population:1;units:mean
In the U.S. there are a total of 196 million credit card users and over 485 million credit card accounts which is an increase of 5% from the end of 2020 to the end of 2021. [3] Credit Card Users and Accounts https://www.transunion.com/blog/all-signs-point-to-a-healthy-credit-market-in-2022 Data shows that the average person has 3 credit cards, with the number of credit accounts increasing with age. As people tend to apply for more credit accounts throughout their lifetime, this progression is understandable.
| Year | Number of Credit Card Accounts |
|---|---|
| 2018 | 432.1 |
| 2019 | 456.8 |
| 2020 | 454.9 |
| 2021 | 486.9 |
Data from the American Bankers Association shows that out of all the credit card accounts in the U.S., 40.1% carried a balance in the fourth quarter of 2021. Of the remaining accounts, 36.1% used a card but didn’t carry a balance, and 23.8% had a card but didn’t use it during this time period.
| Percent | |
|---|---|
| Carried a balance | 40.1% |
| Used a card but didn't carry a balance | 36.2% |
| Had a card but didn't use it | 23.8% |
Source [4] Credit Card Accounts Carrying a Balance https://www.aba.com/news-research/research-analysis/credit-card-market-monitor
The same data also showed that out of all active card accounts in the U.S., 53% carried a balance at some point in the Q4, and 47% used their card but never carried a balance during that period.
There are a number of different types of credit cards someone could apply for. Some people may choose to use more than one credit card type when making different kinds of payments. Below are some of the most common credit cards you may come across:
Credit card debt statistics vary from state to state, the table below shows the full breakdown of credit card balances from each state. Combining the average amount of debt from each state gives us a U.S. average of $5,729, a percentage increase of 12.4% from 2021 when the average credit card debt was $5,097.
The state with the highest average credit card debt per person is Alaska, with $7,338, and the state with the lowest credit card debt is Wisconsin, at $4,808 per person. From 2021 to 2022, all states saw an increase in average credit card debt, with California’s being the highest at 17%.
| State | 2021 (Q3) | 2022 (Q3) | % Change |
|---|---|---|---|
| U.S. Average | $5,097 | $5,729 | +12.4% |
| Alabama | $4,875 | $5,364 | +10% |
| Alaska | $6,617 | $7,338 | +10.9% |
| Arizona | $5,061 | $5,755 | +13.7% |
| Arkansas | $4,670 | $5,183 | +11% |
| California | $5,154 | $6,030 | +17% |
| Colorado | $5,587 | $6,274 | +12.3% |
| Connecticut | $6,052 | $6,825 | +12.8% |
| Delaware | $5,357 | $6,015 | +12.3% |
| Florida | $5,620 | $6,408 | +14% |
| Georgia | $5,604 | $6,265 | +11.8% |
| Hawaii | $5,525 | $6,343 | +14.8% |
| Idaho | $4,539 | $5,181 | +14.1% |
| Illinois | $5,315 | $6,011 | +13.1% |
| Indiana | $4,528 | $5,017 | +10.8% |
| Iowa | $4,285 | $4,811 | +12.3% |
| Kansas | $5,029 | $5,532 | +10% |
| Kentucky | $4,408 | $4,894 | +11% |
| Louisiana | $5,054 | $5,577 | +10.4% |
| Maine | $4,538 | $5,078 | +11.9% |
| Maryland | $5,911 | $6,668 | +12.8% |
| Massachusetts | $5,232 | $6,046 | +15.5% |
| Michigan | $4,661 | $5,265 | +13% |
| Minnesota | $4,754 | $5,425 | +14.1% |
| Mississippi | $4,449 | $4,912 | +10.4% |
| Missouri | $4,865 | $5,417 | +11.4% |
| Montana | $4,778 | $5,385 | +12.7% |
| Nebraska | $4,789 | $5,312 | +10.9% |
| Nevada | $5,373 | $6,176 | +14.9% |
| New Hampshire | $5,251 | $5,944 | +13.2% |
| New Jersey | $5,995 | $6,819 | +13.8% |
| New Mexico | $4,821 | $5,350 | +11% |
| New York | $5,473 | $6,269 | +14.5% |
| North Carolina | $5,101 | $5,658 | +10.9% |
| North Dakota | $4,874 | $5,408 | +11% |
| Ohio | $4,808 | $5,320 | +10.7% |
| Oklahoma | $5,155 | $5,654 | +9.7% |
| Oregon | $4,630 | $5,316 | +14.8% |
| Pennsylvania | $5,026 | $5,640 | +12.2% |
| Rhode Island | $5,153 | $5,867 | +13.9% |
| South Carolina | $5,176 | $5,714 | +10.4% |
| South Dakota | $4,591 | $5,071 | +10.5% |
| Tennessee | $4,891 | $5,432 | +11.1% |
| Texas | $5,820 | $6,542 | +12.4% |
| Utah | $4,831 | $5,535 | +14.6% |
| Vermont | $4,595 | $5,159 | +12.3% |
| Virginia | $5,864 | $6,477 | +10.5% |
| Washington | $5,231 | $6,043 | +15.5% |
| Washington, D.C. | $5,949 | $6,904 | +16% |
| West Virginia | $4,574 | $5,005 | +9.4% |
| Wisconsin | $4,329 | $4,808 | +11.1% |
| Wyoming | $5,159 | $5,745 | +11.4% |
Source [5] Credit Card Debt by State https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
Statistics on credit card debt tend to vary by age, with the amount of debt and the percentage of people carrying debt changing for different age groups.
The latest data from the Federal Reserve’s 2019 Survey of Consumer Finances shows that people aged 75 or over have the largest average amount of debt at $8,080. People younger than 35 have the lowest credit card balances at an average of $3,660.
When looking at the percentage of people in each age group who carry debt, the 45-54 age group has the most with 52%, closely followed by the 35-44 age group at 51%. People aged 75 and over, who have the highest average amount of debt, actually have the lowest percentage of people with credit card debt at 28%.
| Age Group | Average Credit Card Debt |
|---|---|
| Younger than 35 | $3,660 |
| 35-44 | $5,990 |
| 45-54 | $7,670 |
| 55-64 | $6,880 |
| 65-74 | $7,670 |
| 75 or older | $8,080 |
Source [8] Federal Reserve - Average Credit Card Debt by Age https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:agecl;population:all;units:mean
| Age Group | Average Credit Card Debt |
|---|---|
| Younger than 35 | $3,660 |
| 35-44 | $5,990 |
| 45-54 | $7,670 |
| 55-64 | $6,880 |
| 65-74 | $7,670 |
| 75 or older | $8,080 |
Source [8] Federal Reserve - Average Credit Card Debt by Age https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:agecl;population:all;units:mean
Credit card debt data also varies by race when it comes to the amount of debt people carry. White people have the highest average amount of debt at $6,940, and Black non-Hispanic people have the lowest with an average of $3,940 in credit card debt.
The percentage of people carrying credit card debt is similar across all races, but Hispanics have the highest percentage of people with debt at 50%. You can see the full breakdown of credit card debt among different races in the table below.
| Race | Average Credit Card Debt |
|---|---|
| White, Non-Hispanic | $6,940 |
| Black, Non-Hispanic | $3,940 |
| Hispanic | $5,510 |
| Other | $6,320 |
Source [9] Federal Reserve - Credit Card Debt by Age https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:racecl4;population:all;units:mean
| Race | Percentage with Debt |
|---|---|
| White, non-Hispanic | 45% |
| Black, non-Hispanic | 48% |
| Hispanic | 50% |
| Other | 44% |
Source [9] Federal Reserve - Credit Card Debt by Age https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:racecl4;population:all;units:mean
Statistics from the Federal Reserve show that there is a difference between levels of credit card debt when it comes to someone’s educational level. The data shows that people with a college degree have the highest levels of credit card debt, with the average credit card balance for a college graduate being $7,940.
People with no high school diploma have the lowest average levels of credit card debt at $3,390, and those with a high school diploma but no college degree fall in the middle with $4,940.
Take a look at the graph below to see the breakdown of credit card debt by different education levels.
| Year | No high school diploma | High school diploma | College degree |
|---|---|---|---|
| 2001 | $2,860 | $5,270 | $8,230 |
| 2004 | $4,930 | $6,050 | $8,950 |
| 2007 | $5,320 | $7,340 | $13,650 |
| 2010 | $4,240 | $6,940 | $11,960 |
| 2013 | $3,810 | $4,780 | $8,580 |
| 2016 | $4,080 | $4,940 | $8,710 |
| 2019 | $3,390 | $4,940 | $7,940 |
Source [10] Federal Reserve - Credit Card Debt by Education Level https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Credit_Card_Balances;demographic:edcl;population:all;units:mean
According to Elizabeth Aldrich at fool.com, there are a few reasons why people with a college degree might have more credit card debt than people without one. Let’s take a look at some of the factors which can affect this difference. [6] Why Do College Educated People Have More Credit Card Debt? https://www.fool.com/the-ascent/credit-cards/articles/study-americas-most-educated-have-most-credit-card-debt
For college students, getting into debt with a student loan can be a common occurrence, but how does credit card debt affect college students? As we mentioned, people who have graduated from college are more likely to experience credit card debt. Let’s look at the stats for people who are still studying at college.
Data from a College Finance survey of 625 college students [7] Student Credit Card Debt Survey https://collegefinance.com/research/college-student-debt-and-credit-card-usage shows that college students have over $3,280 worth of credit card debt on average, and 68.4% of college students have some type of credit card debt. Below are some more key statistics for credit card debts among college students:
Credit cards can be helpful financial tools when it comes to spreading the costs of your purchases or getting rewards when you spend. But it’s important to be mindful of your credit card use so you don’t get into a difficult situation. Let’s look at some tips for avoiding credit card debt:
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