Average Household Credit Card Debt in the U.S. in 2018

Credit Card Debt in the U.S. — By the Numbers

Do We Know What We Owe?

How Does Your State Compare?

Even as household income and employment rates are ticking up in the U.S., credit card balances are approaching all-time highs. What’s behind the growth of credit card spending among consumers? In an updated report on credit card debt in America, MagnifyMoney analyzed credit debt trends in the U.S. to find out exactly how much credit debt consumers are really taking on and, crucially, how they are managing their growing reliance on plastic.

The following figures only include the credit card balances of those who carry credit card debt from month to month.

The following figures include the credit card statement balances of all credit card users, including those who pay their bill in full each month.

At first glance, it may seem that Americans are taking on near record levels of credit debt. Over a quarter (28 percent) of American households9 carry credit card debt from month to month, and another quarter (26 percent) carried credit card debt at least once last year.

If you look at the total credit card balances among U.S. households, the figure appears astronomical — $808 billion. But that figure includes households that are paying their credit debt in full each month as well as those that are carrying a balance from month to month.

While credit balances are increasing, the amount of debt that households are carrying from month to month is somewhat lower than it was leading up to the 2008 financial crisis. The total of credit card balances for households that actually carry debt from month to month is $542 billion.

As of the third quarter of 2017, households with credit card debt owed an average of $8,6833 That is a decrease of 22.8 percent compared to October 2008, when household credit card debt peaked at $11,248.10J

And as household incomes have risen in recent years, this has helped to lower the ratio of credit card debt to income. Today, indebted households with average debt and median household incomes have a credit card debt to income ratio of 14.7 percent.11 Back in 2008, the ratio was 20.1 percent12.

Credit card debt becomes delinquent when a bank reports a missed payment to the major credit reporting bureaus. Banks typically don’t report a missed payment until a person is at least 30 days late in paying. When a consumer doesn’t pay for at least 90 days, the credit card balance becomes seriously delinquent. Banks are very likely to take a total loss on seriously delinquent balances.

In the second quarter of 2010, serious delinquency rates on credit cards were 13.74 percent of all balances owed, nearly twice as what they are today. Today, credit card delinquency rates are down to 7.47 percent.13

Credit card debt doesn’t appear on the precipice of disaster, but the recent growth in balances is cause for some concern. Still, our estimates for household credit card debt remain modest.

In fact, MagnifyMoney’s estimates of household credit card debt is two-thirds that of other leading financial journals. Why are our estimates comparatively low?

A common estimate of household credit card debt is:

This method overstates credit card debt. The Federal Reserve Bank of New York/Equifax Consumer Credit Panel (CCP) does not release a figure called credit card indebtedness. Instead, they release a figure on national credit card balances. Representatives of the Federal Reserve Bank of New York and the Philadelphia Federal Reserve Bank both confirmed that the CCP includes the statement balances of people who go on to pay their bills in full each month.

To find a better estimate of credit card debt, we found methods to exclude the statement balances of full paying households from our credit card debt estimates. Statement balances are the balances owed to a credit card company at the end of a billing cycle. Even though full payers pay off their statement balance each month, their balances are included in the CCP’s figures on credit card balances.

Our credit card debt estimate is:3

Once we adjust for these effects, we see that an estimated 122 million Americans carry $542 billion of credit card debt from month to month. Back in 2008, 20 million fewer Americans carried debt, but total credit card debt in late 2008 hovered around $589 billion.16 That means people with credit card debt in 2008 had far more debt than people with credit card debt today.

Average credit card debt among those who carry a balance today is $4,453 per person2 or $8,683 per household.3 In late 2008, the 102 million17 Americans with credit card debt owed an average of $5,858 per person10I or $11,248 per household.10J

Academic papers, consumer finance surveys, and the CCP each use different methods to measure average credit card debt among credit card revolvers. Since methodologies vary, credit card debt statistics vary based on the source consulted.

MagnifyMoney surveyed these sources to present a range of credit card debt statistics.

Low Estimate

High Estimate

People with Credit Card Debt

110 million18A

134 million18B

Households with Credit Card Debt

55 million19

69 million20

Median Household Credit Card Debt

$2,30021

Average Household Credit Card Debt

$5,70023

$9,60024

MagnifyMoney Estimated Credit Card Debt per Person

$4,3515

$4,5555

Academic research shows the conflicting attitude is justified. Some credit card users aggressively pay off debt. Others pay off their bills in full each month.

However, a substantial minority (44 percent)26 of revolvers pay within $50 of their minimum payment. Minimum payers are at a high risk of carrying unsustainable credit card balances with high interest.

In fact, 14 percent of consumers have credit card balances above $10,000.27 At current rates, consumers with balances of $10,000 will spend close to $1,500 per year on interest charges alone.28

Even an average revolver will spend between $65230 and $68331 on credit card interest each year.

Those with the highest credit card debts aren’t necessarily the most financially insecure. According to the 2016 Survey of Consumer Finances, the top 10 percent of income earners who carried credit card debt had nearly twice as much debt as average.

However, people with lower incomes have more burdensome credit card debt loads. Consumers in the lowest earning quintile had an average credit card debt of $2,100. However, their debt-to-income ratio was 13.9 percent. On the high end, earners in the top decile had an average of $12,500 in credit card debt. But debt-to-income ratio was just 4.8 percent.

.txtleft{float:left; width:70%;}.imgright{float:right; width:30%; text-align;text-align: right;} Income Percentile

Median Income

Average CC Debt

CC Debt: Income Ratio

0%-20%

$15,100

$2,100

13.9%

20%-40%

$31,400

$3,800

12.1%

40%-60%

$52,700

$4,400

8.3%

60%-80%

$86,100

$6,800

7.9%

80%-90%

$136,000

$8,700

6.4%

90%-100%

$260,200

$12,500

4.8%

In 2017, Generation X surpassed the baby boomer generation to have the highest credit card balances. Experian estimates that on average, Generation X has a balance of $7,750 per person, 21.94% more than the national average ($6,354). Boomers carry nearly as much as Generation X with an average balance of $7,550.

At the other end of the spectrum, millennials, who are often characterized as frivolous spenders and are too quick to take on debt, have nearly the lowest credit card balances. Their median balance clocks in at $4,315. The youngest generation, Gen Z, has the smallest average balance of $2,047 per person.34

You may think that lower balances spell bad news for banks, but that isn’t the case. Credit card lending is more profitable than ever thanks to steadily declining credit card delinquency. Credit card delinquency is near an all-time low 7.47 percent.13

Despite better borrowing behavior, banks held interest on credit cards steady between 13% and 14%35 since 2010. Today, interest rates on credit accounts (assessed interest) is nearly 15%. This means bank profits on credit cards are at all-time highs. In 2015, banks earned over $102 billion dollars from credit card interest and fees.36 This is 15 percent more than banks earned in 2010.

Using data from the Federal Reserve Bank of New York Consumer Credit Panel and Equifax, you can compare median credit card balances and credit card delinquency. You can even see how each generation in your state compares with the national median.

State

Credit Card Debt Per Debtor

Credit Card Debt Per House

Alabama

$3,710.56

$7,198.48

Alaska

$5,879.85

$11,406.91

Arizona

$4,299.70

$8,341.42

Arkansas

$3,289.01

$6,380.69

California

$4,569.51

$8,864.85

Colorado

$4,898.56

$9,503.20

Connecticut

$5,171.89

$10,033.47

Delaware

$4,338.88

$8,417.42

Florida

$4,318.35

$8,377.59

Georgia

$4,727.46

$9,171.27

Hawaii

$5,330.46

$10,341.09

Idaho

$3,791.84

$7,356.18

Illinois

$4,412.71

$8,560.65

Indiana

$3,624.05

$7,030.65

Iowa

$3,169.16

$6,148.17

Kansas

$3,854.05

$7,476.85

Kentucky

$3,457.67

$6,707.88

Louisiana

$3,767.91

$7,309.75

Maine

$3,905.56

$7,576.78

Maryland

$5,287.61

$10,257.96

Massachusetts

$4,720.53

$9,157.83

Michigan

$3,458.51

$6,709.51

Minnesota

$4,257.26

$8,259.08

Mississippi

$3,204.95

$6,217.60

Missouri

$3,763.46

$7,301.11

Montana

$3,732.83

$7,241.69

Nebraska

$3,594.46

$6,973.25

Nevada

$4,263.19

$8,270.59

New Hampshire

$4,943.44

$9,590.27

New Jersey

$5,361.06

$10,400.47

New Mexico

$4,185.93

$8,120.71

New York

$4,969.84

$9,641.50

North Carolina

$4,124.04

$8,000.63

North Dakota

$3,756.19

$7,287.00

Ohio

$3,738.95

$7,253.56

Oklahoma

$4,038.90

$7,835.47

Oregon

$3,881.17

$7,529.48

Pennsylvania

$4,209.21

$8,165.86

Rhode Island

$4,376.34

$8,490.10

South Carolina

$4,187.65

$8,124.04

South Dakota

$3,608.28

$7,000.07

Tennessee

$3,903.24

$7,572.28

Texas

$4,937.00

$9,577.78

Utah

$3,775.21

$7,323.92

Vermont

$4,199.77

$8,147.56

Virginia

$5,404.32

$10,484.38

Washington

$4,568.09

$8,862.09

West Virginia

$3,381.36

$6,559.84

Wisconsin

$3,410.29

$6,615.96

Wyoming

$3,944.72

$7,652.76

Delinquency Rate

Alaska

11.3%

Alabama

8.5%

Arkansas

9.1%

Arizona

10%

California

8.1%

Colorado

6.9%

Connecticut

7.3%

Delaware

10.4%

Florida

10.8%

Georgia

10.8%

Hawaii

6.5%

Iowa

6.7%

Idaho

6.9%

Illinois

7.3%

Indiana

6%

Kansas

6.5%

Kentucky

8.7%

Louisiana

10.2%

Massachusetts

6.9%

Maryland

8.5%

Maine

7%

Michigan

7.2%

Minnesota

5.3%

Missouri

12%

Mississippi

7.9%

Montana

6%

North Carolina

7.36%

North Dakota

4.22%

Nebraska

4.82%

New Hampshire

6.07%

New Jersey

7.20%

New Mexico

8.32%

Nevada

9.88%

New York

8.22%

Ohio

6.81%

Oklahoma

7.22%

Oregon

6.08%

Pennsylvania

7.05%

Rhode Island

7.06%

South Carolina

7.65%

South Dakota

5.73%

Tennessee

6.67%

Texas

7.84%

Utah

5.56%

Virginia

5.87%

Vermont

5.46%

Washington

5.36%

Wisconsin

4.47%

West Virginia

7.34%

Wyoming

6.49%

Silent

Boomers

Gen X

Millennials

Gen Z

Alaska

$5,456

$9,495

$8,995

$4,464

$1,518

Alabama

$3,511

$6,461

$6,485

$3,324

$1,455

Arkansas

$3,194

$5,995

$6,197

$3,240

$1,803

Arizona

$4,149

$6,967

$6,778

$3,575

$1,555

California

$4,232

$7,050

$6,578

$3,654

$1,596

Colorado

$4,004

$7,499

$7,439

$3,833

$1,514

Connecticut

$4,091

$8,179

$8,046

$3,716

$2,567

Dist. of Columbia

$5,486

$7,976

$7,393

$4,596

$2,814

Delaware

$4,147

$7,128

$7,144

$3,285

$1,608

Florida

$4,311

$7,047

$6,615

$3,639

$1,837

Georgia

$4,356

$7,517

$6,972

$3,540

$1,835

Hawaii

$4,386

$7,073

$7,355

$4,203

$1,657

Iowa

$2,367

$5,297

$6,163

$2,857

$935

Idaho

$3,477

$6,147

$6,332

$3,193

$928

Illinois

$3,641

$7,054

$7,040

$3,537

$1,556

Indiana

$3,137

$5,998

$6,174

$3,003

$1,402

Kansas

$3,187

$6,514

$6,930

$3,292

$1,421

Kentucky

$3,044

$5,727

$6,080

$3,082

$1,372

Louisiana

$3,679

$6,598

$6,561

$3,425

$1,971

Massachusetts

$3,481

$7,017

$7,022

$3,479

$1,882

Maryland

$4,341

$7,994

$7,458

$3,671

$1,749

Maine

$3,107

$6,054

$6,531

$3,375

$1,286

Michigan

$3,436

$6,049

$6,113

$2,971

$1,523

Minnesota

$3,025

$6,299

$6,898

$3,244

$1,338

Missouri

$3,265

$6,333

$6,757

$3,279

$1,346

Mississippi

$3,218

$5,634

$5,718

$3,043

$2,011

Montana

$3,285

$5,977

$6,868

$3,385

$1,506

North Carolina

$3,481

$6,566

$6,710

$3,397

$1,486

North Dakota

$2,141

$5,362

$6,646

$3,326

$1,467

Nebraska

$2,717

$5,909

$6,498

$3,136

$1,388

New Hampshire

$3,582

$7,140

$7,443

$3,519

$1,666

New Jersey

$4,126

$8,011

$7,882

$3,928

$2,241

New Mexico

$4,373

$6,906

$6,534

$3,532

$1,207

Nevada

$4,733

$6,993

$6,357

$3,700

$1,185

New York

$3,906

$7,127

$7,234

$3,986

$2,495

Ohio

$3,313

$6,383

$6,530

$3,135

$1,465

Oklahoma

$3,484

$6,789

$6,900

$3,493

$1,641

Oregon

$3,618

$6,502

$6,481

$3,245

$856

Pennsylvania

$3,282

$6,550

$7,059

$3,457

$1,545

Rhode Island

$3,524

$7,162

$7,313

$3,371

$1,786

South Carolina

$4,019

$6,537

$6,559

$3,281

$1,375

South Dakota

$2,584

$5,710

$6,900

$3,250

$1,531

Tennessee

$3,388

$6,309

$6,505

$3,308

$1,737

Texas

$4,350

$7,591

$7,119

$3,779

$1,945

Utah

$3,364

$6,411

$6,713

$3,070

$932

Virginia

$4,132

$7,956

$7,968

$3,985

$1,692

Vermont

$3,681

$6,197

$6,547

$3,297

$2,511

Washington

$3,947

$7,365

$7,190

$3,500

$1,355

Wisconsin

$2,740

$5,673

$6,289

$2,914

$992

West Virginia

$2,914

$5,573

$6,158

$3,238

$1,166

Wyoming

$3,523

$6,356

$6,889

$3,663

$1,442

199 million1 * 67% (Not full payers) b = 134 million people with credit card debt.

194 million1 * 67% (Carried debt at some point last year) * $4,3505d in debt per person = $583 billion in debt

[$808 billion – ($3,412 (full payer balance) * 33% full payer * 199 million credit card users1)] / (199 million credit card users * (100% – 33% not full payers)) = $4,350

$808 billion in outstanding credit card balancesaEstimate that 45% pay balance in full each monthcFull payers carry an average balance of $3412 before paying it offb

[$808 billion – ($3,412 (full payer balance) * 45% full payer * 199 million credit card users1)] / (199 million credit card users * (100% – 45% not full payers)) = $4,555

76.6% of people with credit reports had balances on credit cards in September 2008a x 240 million adults with credit reports in Q3 2008b= 183 million credit card users.

$866 billion in outstanding credit card debt in Q3 2008cAverage balance of $3,412 for “full payers.”f33% full payersf

[$866 billionc – ($3,412f (full payer balance) * 33% full payerf * 183a/b million credit card users)] / (183a/b million credit card users * (100% – 33%f not full payers)) = $5,365

Estimate H:

76.6% of people with credit reports had balances on credit cards in September 2008a x 240 million adults with credit reports in Q3 2008b= 183 million credit card users.

$866 billion in outstanding credit card debt in Q3 2008cAverage balance of $3,412 for “full payers.”d44.5% in debtd

[$866 billion – ($3,412 (full payer balance) * (100% – 44.5% (estimate of full payer)) * 240 million people with credit reports)] / (240 million people with credit reports * (44.5% in debt)) = $6,352

Estimate I:

Average estimated credit card debt per person is $5,858.

Estimate J:

$866 billion in outstanding credit card debt in Q3 2008cAverage balance of $3,412 for “full payers.”d33% full payers, we calculated

$866 billionc – ($3,412d (full payer balance) * 33% full payerd * 183 million credit card usersa/b) = $659 billion

Estimate H:76.6% of people with credit reports had balances on credit cards in September 2008a x 240 million adults with credit reports in Q3 2008b= 183 million credit card users.

$866 billion in outstanding credit card debt in Q3 2008cAverage balance of $3,412 for “full payers.”d44.5% full payerse

$866 billionc – ($3,412d (full payer balance) * 44.5% full payere * 183 million credit card usersa/b) = $518 billion

76.6 percent of the adult population uses credit cardsa X 240 million adults with credit reportsb = 183 million credit card users X 44.5% with debtc = 82 million with credit card debt

76.6% of the adult population uses credit cardsa X 240 million adults with credit reportsb = 183 million credit card users X 67% with debtd = 123 million with credit card debt