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Average Credit Card Debt Statistics

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credit card debt statistics

Average Credit Card Debt Statistics

(Updated January 2021) 

As of quarter 3 in 2020, the average credit card debt has decreased for the first time in several years. Time will tell the economic effects of the COVID-19 pandemic and whether credit card debt will continue to decrease or not. The average American debt per household is also continuing to climb due to the ever increasing out-of-pocket healthcare costs among other things.

Whatever the case may be, the average debt credit card users have is increasing. On average, an American has 2.7 credit cards.On this page, we will look at the average household debt by country. We will also zoom in to look at the debt average by state, gender, age, generation, income level, & race.

Average U.S. Consumer Debt Statistics Profile:

2020 Credit Card Debt Statistics 

  • Average US Credit Card Debt 2020 – $5,315
  • First time in 8 years that the average amount of credit card debt has decreased
  • At the end of quarter 3 in 2020, Credit card debt in America dropped for the first time with experts estimating credit card debt at $756 billion
  • Other types of debt continue its upward trend

2019 Credit Card Debt Statistics 

  • Average American Credit Card Debt  2019- $5,331
  • Mortgage Debt – $148,060
  • Student Loan Debt – $33,654
  • Car/Auto Loan – $18,588
  • Total – $205,633​
  • Countrywide U.S. Revolving Debt that Americans carry – $1.03 trillion
  • Average Mortgage Debt % on loans – 4.12% on 30 year fixed, 3.65% on 15 year fixed
  • Average per year spent on credit card interest – $753.80
  • Average credit card interest rate American has on credit card debt – 14.14%
  • Total credit card debt for all Americans – $974.2 billion in 2019

Average Credit Card Debt Statistics by Country

This is a breakdown of the average credit card debt 2020 statistics of the top 10 countries by Gross Domestic Product (GDP). Theoretically, one might expect the countries that have the lowest amount of credit card debt to be the top GDP country. However, that is not the case, as this list is ranked from 1-10 by GDP, but the average credit card debt by country does not line up with the GDP rankings.

average credit card debt by country

Average Credit Card Debt Statistics by State 

Some state rankings may be surprising, as the general trend is that the higher populated states have higher credit card debt. However, the state with the highest credit card debt, Alaska, has the 3rd lowest state population.

States with the lowest average debt are Iowa, Wisconsin, Kentucky, South Dakota and Idaho.  States with the highest debts include Alaska, New Jersey, Connecticut, Virginia & Maryland, a good sign as the average debt in America continues to rise. The District of Columbia is not shown in this graph of the average credit card debt by state.

Average credit card debt by state

Average Credit Card Debt Statistics by Gender 

By a fairly wide margin, females carry less credit card debt than males. Trends show this most likely due to women using their cards for smaller purchases, where as men tend to use their cards for big purchases.

Average credit card debt by gender

Average Credit Card Debt by Age 

A breakdown of average credit card debt by age is probably the most predictable categorical breakdown on this list.

The stats on people under 35 include millennials that do not have credit cards, therefore bringing down the average household credit card debt. However, the lowest average debt by age is held by the 75 years + group. However, the 45-54 year olds have the highest average debt by age.

average credit card debt by age

Average Credit Card Debt Statistics by Generation

Generation, similar to age, makes sense according to the stage of life that they are in. Baby Boomers and Generation X, being in the middle of life, tend to use the most cards and charge the most on them.

average credit card debt by generation

Average Credit Card Debt Statistics by Income 

The breakdown of credit card debt by income level increases at a very steady and consistent rate. It makes sense, too, that with more money the average household carries and makes, the more they will spend.

average credit card debt by age

Average Credit Card Debt Statistics by Race

average credit card debt by race

Credit card debt statistics

downloads and resources

Data Resources

  • creditkarma.com
  • creditdonkey.com
  • chinabankingnews.com
  • ceicdata.com
  • fool.co.uk
  • cbc.ca
  • worldatlas.com
  • debt.org
  • valuepenguin.com
  • WalletHub.com
  • Fortune.com

Resource Downloads

Download web optimized versions of our data charts and infographics.

2020 Update:

According to the current data available, the average credit card debt in America decreased for the first time in 8 years. Credit card usage has decreased and despite a pandemic, delinquency rates have also decreased. It is unclear whether these are the result of decreased spending in general, or the Coronavirus relief stimulus. There are likely many factors that play into this trend.

Time will tell whether the downward trend will continue as the consequences of a global pandemic remain to be seen. We will update our page as more clear data emerges about the US credit card debt amount.

Why Credit Card Debt Continues to Rise in the U.S.

Global credit card debt continues to rise, and it is no different for the credit card debt in America. The data from the Survey of Consumer Finances by the Federal Reserve Bank shows 183 million Americans now have credit cards. That number continues to climb each year.

The amount of consumer and personal debt by country resulting from increased credit usage will continue to increase as well. So, what is the average credit card debt in the US? The average credit card balance (or debt)  in the U.S. is at $6,741 a person.

As more credit cards are introduced to the public, more purchases are made. This doesn’t just include every day purchases, vacations or overspending in general. Since 2009, healthcare costs have increased 33% leaving many Americans with high deductibles and having to pay more out-of-pocket for medical costs. Some are opting to put these costs on credit.

So regardless of where the money is spent, a good majority of that spending becomes debt as consumers realize that they’ve spent more than they could afford to pay in cash- by want or necessity.

According to the Survey of Consumer Finances by the Federal Reserve Bank, less families are paying down credit card debt than in the past, even with more families having credit cards. However, even with less families paying down credit card debt, credit card delinquency rates have only increased slightly.

Credit card fraud also contributes to rising credit card debt. Criminals can max out an identity theft victim’s card and many times cause that victim to go into credit card debt.

So if you have a credit card, make sure you protect yourself from these hackers with some sort of anti credit card theft technology. Monitor your credit statements closely and immediately notify the issuing bank if you notice fraudulent charges.

Finally, the average debt with also continue to increase along the use of rewards cards. Cash back & other rewards cards are great in theory. Customers are likely to spend more to get more rewards back.

While it’s great marketing for the issuing banks, it comes at a very high cost to the businesses that accept the cards and to the consumer. Rewards cards carry very high percentage rates, and so interest begins accumulate if the balance isn’t paid in full every month.

Your total outstanding revolving credit card debt will continue to grow as long as the credit card account is open. Revolving credit isn’t a bad thing by itself, but when it becomes revolving debt, it can become a concern. The average revolving debt continues to rise as people put more purchases on credit cards with accumulating interest.

Ways to Avoid Credit Card Debt

The answer to “How to avoid credit card debt” is generally very simple. Don’t spend more than you have and don’t fall for all offers for rewards & cash back cards out there.

Budget carefully and don’t live beyond your means. While this can be challenging with so many different factors that impact our finances, the important thing to do is start. There are several groups on social media, budget apps, & financial books out there to help you get a handle on your finances. Remember, if you couldn’t pay cash for something right now – then don’t. Don’t borrow from your future – save up until you have the funds in your bank account.

If you have to put something on credit, make a plan to pay it off as fast as possible. Paying interest is another way you are borrowing from your future self. So be smart and avoid building credit card debt by keeping up with your credit card payments.

Pay them immediately and don’t let them pile up on you. People tend to get in trouble when they wait to pay off their credit cards, only to see balance pile up higher & higher if not paid quickly.

Getting behind on paying your credit card balances can lead to credit card delinquency and higher delinquency rates, which will negatively affect your credit score.

One of the biggest & most dangerous ways people accumulate credit card debt is through using it to obtain a cash advance. Using credit card accounts to get cash is very costly and cannot mean good things for your financial situation. This is largely because it comes at a very high cost to you – the percentage rates on these are usually astronomical- and using credit for the purpose of getting cash is usually a last resort.

There’s no reason to use a credit card for cash if you have the money in a standard checking account.

Conclusion

Paying off credit card debt is obviously very important in many different aspects, including building a positive credit history and keeping your interest rate as low as possible. A low interest rate will result in you saving money through smaller credit card payments.

Just as managing student loans or business loans can lead to an improved credit score, so can deciding to pay off debt accumulated from credit cards. Ensure your month to month payments for all expenses are on time, including mortgage, utilities, auto loans, student loans & credit balances.

Most credit cards consumers have some sort of debt. An average American credit report would show a score of 704 which qualifies as “good.”. American households are, though, building more and more credit card debt, with the average credit card balance being $5,331.

Carrying credit card debt can cause personal problems in addition to financial problems. Finance issues are a big personal stress and add stress to a family or marriage as household debt adds up.

With that in mind, if you have outstanding debts resulting from credit cards, we recommend getting aid from someone who specializes in debt management & credit counseling to help you pay off that debt or reach a debt settlement.

Sure, there are ways to move the credit card debt, like performing a balance transfer. While that  might help move the debt, it won’t pay it off or clear it. Using a balance transfer card could even further complicate problems by adding to your debt with a transfer fee for each transfer.

Credit card debt is something to stay as far away from as possible. If not paid off in a timely fashion, it can result in higher auto loan, personal loan and mortgage rates. Even health insurance, life insurance and some car insurers have higher rates for those with outstanding credit card debt. It will not, however, affect social security for those that are receiving it.

If you do get into credit card debt, be sure to pay it off as quickly as possible, so that it does not negatively affect you long term.

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Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

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