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.

Let’s get to know more about the credit card debt in the US based on various factors. 

What is the average credit card debt per American household?

American households’ average credit card debt stood at $6270; however, the median credit card debt stood at $2700. As a result, the average annual interest bill for American households with credit card debt is $1,029 this year.

Since the beginning of the Covid-19 pandemic, the average total household debt has increased by 3.3% to $155,038 in 2020. In addition, Americans collectively owe $807 billion on nearly 506 million credit card accounts.

Over the last two years, median household income has decreased by 3%, while the overall cost of living has increased by 7%. This is a sharp turnaround from a decade-long pattern in which income growth exceeded inflation, even though earnings are still ahead of the cost of living if the decade beginning in 2011 is considered.

Credit card balances for the average American household have risen by more than 80% since 1990, even after inflation is taken into account.

Read Also: U.S. Credit Card Debt Statistics

What is the average monthly credit card bill for family of 4?

As per the average minimum payment percentage of 2%, the average monthly credit card bill for a family of 4 stands at $125.4. 

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

Since 1990, the average credit card balance of American households has risen by more than 80% even after inflation is taken into account.

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What is the average credit card debt per person?

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

This is still a significant sum, but it has already declined over the past two years. For example, in 2019, it was $6,629, and in 2020 it was $5,897. This information comes 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 surveyed saying they do not always make the minimum payment.

Alaska had the highest average credit card debt per person, at $6,617, while Iowa had the lowest, at $4,289.

What is the average credit card debt per month?

The average credit card debt per month for an average American stands at around $420. However, calculating the average credit debt per month for a US household will come to $522.5. 

According to the Federal Reserve, Americans owe $807 billion across nearly 506 million credit card accounts. Yet, no matter how much debt Americans rack up, they still have $71 billion less than the previous record set in the fourth quarter of 2019, when credit card balances were $927 billion.

However, credit card debt in America remains high by historical standards. It is also light years ahead of the $478 billion recorded in the first quarter of 1999, 21 years ago.

How many Americans have credit card debt?

Americans have an overall 506 million credit card accounts, in which they owe a total of $807 Billion. Approximately 95% of American adults have a credit card open in their name.

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

About a third of those polled have debts ranging from $1,000 to $5,000, and another fifteen percent have balances of $5,000 or more on their credit cards.

Seventy-five percent of cardholders carry a balance greater than $0, with an average balance of $5525.

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How the Pandemic Changed Credit Card Debt in America?

Individual consumer debt decreased from $6,194 in 2019 to $5,315 in 2020. Indeed, every state saw a decline in the average balance.

The coronavirus crisis in 2020 led to a decrease in both outstanding credit card debt and credit limits from issuers. These balance decreases have been attributed to decreased spending during quarantine and to a combination of economic impact payments and additional unemployment benefits.

Credit card limits were lowered for 34% of customers at the start of this crisis to help the banks to avoid losing money in uncertain economic times.

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Bottom Line

So this was all about what is the average American credit card debt per household. The credit card debt took a hit during the pandemic due to less spending and lockdowns. However, it was raised again in 2021. Even the total debt owed by Americans is in big numbers of $807 Billion. This big number will surely take a lot of time to be repaid back. 

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