What's the average credit card debt by age?

Question

The average American credit card debt is $8,701 per household, according to WalletHub’s 2019 Credit Card Debt Study. Americans started 2019 with over $1 trillion in credit card debt. And though we repaid $38.2 billion of that amount by the end of Q1, we added $35.5 billion in new debt by the end of Q2. That’s the largest Q2 buildup, ever, and we continued adding to our tab throughout the rest of the year. In other words, there is reason to be concerned about the average American’s credit card debt.... read full answer

The $8,701 that the average household owes is $498 higher than what WalletHub considers sustainable. That means minimum payments will eventually become too expensive for people with so much credit card debt. That will lead to missed payments and cause charge-off rates to rise. And that in turn will hurt consumers’ credit scores, lenders’ bottom lines and even the economy as a whole.

Average American Credit Card in 2020:

Average household debt: The average American household owes $8,701 in credit card debt, according to WalletHub.

Average debt over time: The average American household’s credit card balance has increased by more than 80% since 1990, after adjusting for inflation.

City with the least sustainable credit card debt: It will take people in Jacksonville, North Carolina roughly 138 months to pay off their median debt of $3,435, and it will cost $4,048 to pay off.

City with the most sustainable credit card debt: It will take residents of Cupertino, California roughly 12 months to pay off the city’s median credit card debt of $2,408. They will pay an estimated $215 in finance charges in doing so.

You may owe more or less credit card debt than the average American. But it’s important to remember that carrying any credit card balance from month to month will be very expensive, unless you have a 0% introductory APR. The average credit card offer has a 18.61% APR.

Plus, when you carry a credit card balance, it’s hard to determine whether you’re regularly overspending on new purchases. That can easily lead to more debt than you can afford and then missed payments. Both of those bring about credit score damage.

If you’re currently dealing with credit card debt, you’ll want to make sure you pay it off efficiently. That means cutting back on extraneous spending and attacking the balances with the highest interest rates first. You may also want to look into balance transfer credit cards or debt management plans.

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Answer 1 · 2021-02-12 12:22:06

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WalletHub, Financial Company

@WalletHub • 02/12/21 This answer was first published on 09/22/18 and it was last updated on 02/12/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The average credit card debt by age ranges from $3,660 for people between the ages of 18 and35 to $8,078 for people aged 75+. The combined average credit card debt (for all ages) is roughly $6,271 per household, according to Federal Reserve data from 2019. It’s even higher if you only consider households that carry a balance from month to month.

WalletHub’s latest analysis, as of Q3 2020, shows that the average household has $7,849 in credit card debt. That is $2,636 below WalletHub’s projected breaking point.

Average Credit Card Debt by Age Range:

18-35: $3,660
35-44: $5,991
45-54: $7,672
55-64: $6,884
65-74: $7,033
75+: $8,078

Source: 2020 Federal Reserve Survey of Consumer Finances

The average credit card debt by age makes a lot of sense when you think about it. Cardholders younger than 35 years old have the lowest average credit card debt because many of them have starter credit cards with relatively low spending limits.

But as people reach middle age, debt levels increase. While these people are in their peak earning years, they have more expenses like mortgages and child care expenses.

From middle age, the average credit card debt declines. Retirees often have a fixed income. But they’ve also paid off most major debts and spend their money on everyday expenses.

Answer 2 · 2019-12-02 14:50:36

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Karen Moroz, WalletHub Mortgage Analyst

@nycKaren • 12/02/19 This answer was first published on 12/02/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The average American household is carrying a balance of $5,500, but credit card debt appears to peak for individuals who are between 45 and 54 years old at about $9,000.

What's the average credit card debt by age?

WalletHub, Financial Company

Average Credit Card Debt by Age Range:

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Karen Moroz, WalletHub Mortgage Analyst

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