What is the Average American Credit Card Debt Per Household?

by Violet WillettOctober 18, 2023
What is the Average American Credit Card Debt Per Household?

The convenience and safety that credit cards offer make them one of the most preferred payment methods by consumers of all ages. Statistics show that there are around half a billion active credit card accounts today. The massive increase in account issuance is also the reason why 38% of all merchant transactions in 2020 consisted of credit card payments.

Unfortunately, credit card issuance doesn’t come with debt management training. Too many cardholders spend their money carelessly. A CNBC report even states that the average working American carries around $6,100 in credit card debt. What’s worse is that a good percentage of these cardholders are likely behind on payment by at least a month or two.

What Age Group Carries the Most Debt

A survey by Experian details the average credit card debt that each age group carries:

  • 20 - 29: $2,709
  • 30 - 39: $5,563
  • 40 - 49: $7,922
  • 50 - 59: $8,364
  • 60 - 69: $6,832
  • 70 - 79: $5,250
  • 80 - 89: $2,990
  • 90 - 99: $1,433

The chart indicates that the average debt of a cardholder rises steadily during their 20s, peaks during their 50s at $8,364, then slowly decreases down to an average of $1,433.

Tips to Decrease Credit Card Debt

Here are some simple, efficient ways to decrease your credit card debt:

  • Pay Bills On Time: Consistently paying your credit card bill on time is the simplest way to keep your bills and dues to a minimum.
  • Limit Expenses: If you don’t want your bills to rack up, don’t spend money you don’t have.
  • Consider Debt Settlement: Talk to your issuing bank about debt settlement options if you are no longer capable of paying off the entire debt amount on your credit card.

Final Thoughts

Getting out of debt doesn’t have to be complicated. The goal is to live within or below your means, control unnecessary spending, keep track of credit/loans, and commit to a regular savings plan.

Also, don’t be afraid of credit cards. If utilized properly, credit cards can be an excellent tool to boost credit standing and improve your reputation with the bank. Banking institutions love to work with good-paying debtors, so keep paying your bills on time.

Struggling to pay off lenders you owe money to? Any Credit has multiple resources on how to boost savings, clear debt, and achieve financial freedom. Reach out to the Any Credit team for assistance today!

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