Americans have a mountain of credit card debt – $986 billion, to be precise.
This credit card debt statistics page records people’s monthly credit card usage. We update this website on a regular basis, taking into account how much debt people have, how often they carry a balance from month to month, how frequently they pay their credit card bills, and other factors.
According to the Federal Reserve and the most recent consumer debt data, Americans’ total credit card debt balances will be $986 billion in the fourth quarter of 2022. This is the highest sum recorded since the New York Fed began keeping track in 1999. That is a $61 billion increase from $925 billion in the third quarter of 2022, making it the highest quarterly growth in history.
Credit card balances have increased by $130 billion since the fourth quarter of 2021. With the increases, Americans’ credit card debt balances have risen by $59 billion since the fourth quarter of 2019, when balances were at $927 billion.
Rising interest rates, tenacious inflation, and a slew of other economic indicators suggest that American’s credit card debt balances may soon reach $1 trillion dollars for the first time since the New York Fed began keeping track.
As the pandemic hit in 2020, credit card balances fell once again, from $927 billion in the fourth quarter of 2019 to $770 billion in the first quarter of 2021. Nonetheless, the economy has hit a downturn and we have seen a significant spike in American households credit card debt balances.
Which states’ residents have the most credit card debt?
According to a study conducted by Lending Tree in 2022 where they analyzed 370,000 consumers credit reports they found that the national average card debt balance among cardholders with delinquent amounts was $7,279. This covers bank cards, retail credit cards and unsecured loans debt..
Based upon the data Connecticut residents had the highest balance credit card debt at $9,408 and Kentucky residents owed the least at just $5,408.
Do you carry a balance on your credit cards?
According to the American Bankers Association, Americans held a balance on 53% of their active revolving credit cards.
Sadly, most people who use a credit card do not always pay their payments in full. According to a November 2022 LendingTree study, just 35% of cardholders always pay their credit card balance in full every month, while 65% carry a balance. The study further states that 46% of all credit cards that carry a balance will take at least one year to pay off.
According to the American Bankers Association, more than half (53%) of all active accounts had a balance in the second quarter of 2022, the most recent quarter for which we have statistics. This is a one-point decrease from the first quarter of 2022 and the first quarterly fall since the second quarter of 2021. Despite recent gains, that proportion remains well below pre-pandemic levels. For example, in the first quarter of 2019, 60% of active accounts had a balance, before declining to 51% in the second quarter of 2021.
According to American Bankers Association statistics, 40% of credit card accounts were active and had a balance at some point in the second quarter of 2022, 36% were active but did not carry a balance, and 24% were inactive for the quarter.
American Household Credit Card Debt Study
The cost of living has risen faster than salaries in the last year, pushing many Americans to take on additional debt to make ends meet. In addition, rising interest rates in reaction to inflation make debt more expensive.
Prices are increasing more quickly than salaries. The median household income has increased by just 4% in the last year, while the entire cost of living has increased by 8%. According to the study, over half of all employed Americans (45%) believe their salary has not improved enough in the last year to keep up with inflation.
Buy now, pay later services may result in increased debt for millions of people. In the last year, nearly one-fifth of all Americans (18%) had utilized a BNPL (buy now pay later) service.
Important discoveries
- Prices are increasing more quickly than salaries. The median household income has increased by just 4% in the last year, while the entire cost of living has increased by 8%. According to the study, over half of all employed Americans (45%) believe their salary has not improved enough in the last year to keep up with inflation.
- Buy now, pay later services may result in increased debt for millions of people. In the last year, nearly one-fifth of all Americans (18%) had utilized a BNPL service.
- Customers are concerned about their financial situation in the coming year. About seven out of ten Americans (70%) are concerned about their financial situation in the coming year. The most common concern is having to go into debt/add to their debt to fulfill financial obligations, followed by having to pay more interest on their debt.
- Due to recent Federal Reserve rate hikes and growing levels of outstanding credit card debt, the average amount of credit card interest paid by consumers has increased. Credit card debtors in the United States will pay an average of $1,380 in interest this year alone.