How Much Credit Card Debt Is The Average American in

How much credit card debt is the average American in?

How Much Credit Card Debt Is The Average American in? Credit card usage in the United is huge, per current statistics each American is estimated to have at least four (4) credit cards. This has happened for various reasons and one of them is that people normally want an easy way out of how they manage their debt. It is easier sometimes to pass on credit card debt to another card that comes with little or no interest on balances. These credit debts can sometimes run into several hundred to thousands. The question is just how much credit card debt the average American owes. This question will generate a lot of answers depending on which time is being considered, which year, which month and under what economic conditions.

Many institutions come up with various statistics every now and then. From some experts like Experian, in the year 2021, the average credit card debt of Americans was USD 5,221. This was for the third quarter of the year. Per Experian, even a 15% increment to this figure will land at USD 5,525. In the third quarter of the year 2022, the figure shot up to USA 6,004. It has been estimated that the debt of credit cards in the United States alone is the second largest debt, and only second to mortgage debt. While the state of Alaska comes up as the State with the highest debt of credit cards, a state like Iowa comes up as the state with the least credit card debt of USD USD 4,289 in 2020 and in the year 2021 it had USD 4,587. Alaska had a debt of USD 6,617 in the year 2020 and USD 7,089 in 2021. In terms of brands, Generation X is reported to have the highest of all credit card debts of USD 7,236.

With respect to demarcated areas, the group of people with the highest ratio of credit card debt in relation to their income is Hispanic America. It has been estimated to be at 9.96%

Per current statistics, by the time the average citizen of the USA attains the age of 20, they already have a credit card to use. This seems to be a good idea until the user accumulates huge debts and balances otherwise it comes in handy and is a wise way to accrue some good credit history. Unfortunately, as already stated, the debts accumulated by these cards become a source of stress for many citizens.

In the year 2023 and beyond, one of the major headaches of the United States citizen is how to beat down the amount of money they owe, or their level of indebtedness. It has been estimated that this goal is the ultimate aim for most American citizens. 70 out of every 100 Americans have this as their goal. This figure actually means that there has been a decrease in the number of Americans who have been carrying heavy credit card debts since 2019.

Once people who use credit cards begin to know the situation of credit card usage numbers, it greatly aids in how they take a look at their own situations and then map a strategy that will aid their exit from huge debt.

When it comes to credit card debts, Alaska still leads, and it normally has a debt that is averagely higher by a margin of 20% than the national average. On the other hand, the state of Iowa almost always has a lower debt of up to 27% less than the national average.

What usually turns to happen is that, the states that have a higher cost of living turn to amass very high balances as compared to those with a lower cost of living. Some of the states with very high costs of living and subsequently higher credit card balances include Hawaii, the District of Columbia, (D.C.), Connecticut and Alaska.