June 16, 2024

Many have been shackled by overwhelming credit card debts simply because their monthly expenses are much more than they earn. Credit card holders can go on a shopping spree without the present funds to make payments.

Most credit card debtors are in the habit of picking items that they cannot pay for. They make a small deposit and take over the rest of the payment into the next month. The USA data shows that, on average, the national card debt of cardholders with balances fell. In 2023 Q4, it was $6,864, down from $6,993 in the 2023 Q3.

This is a one-off thing to some, while others make it a way of living. It becomes a mindset that you can get whatever you desire without necessarily paying for it at the point of purchase. The harsh truth is that sellers will most likely not forget debts in the hands of buyers. They keep on calling and texting to remind you of what is owed. This seems like a bitter truth, but that is the game in debt. Getting to know the numbers on credit card debts can help anyone have a better grasp on its fallout. Let’s dive in.

Key Credit Card Debt Statistics 

Key Credit Card Debt Statistics 

  1. Debts owed through credit cards come in second place after mortgage debts, which are the highest. 
  2. As many as 1.06 billion credit cards have been used in the United States, while 2.8 billion are used globally
  3. The average American citizen has their name up to 4 credit cards in use
  4. The average person in Europe holds an average of 0.8 to 3.9 credit cards.
  5. As far back as 2016, up to 6 out of every 10 adults in the United Kingdom used a credit card. 
  6. As many as 9 in every 10 adults in the United Kingdom in 2016 had a debit card.

Credit Card Debt Demographics

Credit Card Debt Demographics

1. People Over 75 Have the Highest Credit Card Debts in the United States.

Records show that older people are more prone to credit card debt than others. Around 28% of people in this generation are in debt. They have the largest average credit card debt, with as much as $8,100.

2. Those Between 45 and 54 Years of Age Have an Average Credit Card Debt of $7,700.

Just after older people are those who are 45 to 54 years of age, with an average debt of $7,700, a large percentage standing at 52%, which shows their spending habits.

3. Cardholders in the United States Below 35 Have the Lowest Credit Card Debt, With Just $4,289.

Those under 35 have one of the lowest credit card debt averages, with $4,289.

4. As High as 3 in Every Five Adults in the United States Have Run into an Average Debt of $5,875.

As many will say, times are hard, so turning to a credit card seems to be the only way to live. 61% of people are in this situation, meaning 3 in every five persons living in the United States are deep in credit card debt. 23% have gone way deeper into debt in 2023 as the months go by. Another 14% said that they have been unable to pay off their debts when they were due in the past months.

5. White Americans Comprise the Largest Average, With as Much as $6,900 in Card Debt.

Regarding the difference between races, the white American is at the top spot with an average debt of $6,900. Black Americans have the lowest place in credit card debts, with a tidy sum of $3,900.

6. An Average Person Owed Around $617 More in the Third Quarter of 2022 Than the Past Year.

Rising prices of goods and services caused many to turn in this direction. This debt rise brought the sum to $38 billion in just one quarter of the year, an increase of 15% in the space of a year. It was the largest ever recorded in the past two decades. 

7. Many Debts Can be Tied to 28% of Credit Card Payments.

The study shows that just 9% of United States citizens purchase with cash. About 54% of Americans would rather use a virtual debit card when purchasing. Of these, 36% choose a virtual debit card anytime, anywhere. Another 28% use a credit card to buy everything from the store. This could be why many scholars have fallen deep into credit card debts. 

Statistics of the United States Credit Card Debt

Statistics of the United States Credit Card Debt

8. The Use of Credit Cards in the United States is Rising, Reaching Beyond $1 Trillion in 2023.

We all know that many people in the United States use credit cards. However, credit cards have become a new phenomenon, as over $1 trillion in transactions were completed in just 2023.

9. As High as 82% of People in the United States Have to Their Name One or More Credit Cards in Use.

This shows that many United States citizens use credit cards for daily expenses.

10. The Year 2022 Will be Remembered for a Long While as They Were a Credit Card Debt of $930.6 Billion.

It was quite a remarkable year, with debts rising to $930.6 billion at the close of 2022. This was a big deal, representing an 18.5% rise from the previous year. 

11. 2020 Was not a Bit Different, With an Average Debt of $5,315 Per Person When it Came to an End.

Many people rely on their credit cards to get started more easily. At the end of 2020, each person had an average credit card debt of $5,315. This situation did not change much the next year, with an average of $5,221.

12. As Many as 55% of Young Adults Between 18 and 29 Use a Credit Card Daily.

In 2021, more than 50% of people aged 18 to 29 will have a credit card in their name.

13. Up to 73% of Persons Aged 30 to 49 Had a Credit Card When 2021 Was Close.

As much as 73% of people between the ages of 30 and 49 did have a credit card in 2021.

14. Many Americans Have Paid Their Debts at the Top of the List Yearly. 

70% of people in the United States will give anything to get their debtors off their backs. 

15. Average Credit Card Debts Fell by 14% When the Curtain of 2020 was Closed.

The credit card balance fell by $879 from 2019, a 14% decrease from the previous year. Debt also reduced moderately, falling from a peak of $6,194 to an average of $5,315 at the close of 2020. 

Credit Card Debt Trends

16. The Sum of Credit Card Balances Hit $1.079 Trillion in the Third Quarter of 2023.

A Federal Reserve Bank of New York report shows a hike in credit card balances, now at $1.079 trillion, much higher than they have been since 1999.

17. Many Thanks to the Pandemic, Many Americans Grow Their Financial Health.

During the COVID-19 pandemic, movements were grounded, bringing down consumers’ and credit card spending. That wasn’t surprising since many people paid in full or received a partial refund. This positively reflected the rate at which unpaid balances were carried over to the next month. 

18. More Debts Rose at the Break of the 2021 Second Quarter After the Heat of the Pandemic.

They had a hike in credit card debts over the past year at the dawn of 2021, which raised concern. Getting to 2023 brought the total sum of credit card balances to more than $1 trillion for the first time in a long while.

19. Findings are Firm on the Belief That Those Low in Finance Turn More to Credit Card Debts.

The number of debts among those who earn below $25,000 has always been on the rise. However, the level of credit card debt from low-income earners has risen since 2020. This is not to say that most in this group pay their debts when due. Many habitually pay a bit of the sum to carry it over to the next month.

20. Those Who Belong to Generation X in the United States Have an Average Credit Card Debt of $8,134.

Most Generation X people with a credit card to their name owe an average of $8,134 in the United States.

21. One State With the Highest Credit Card Debt is Alaska, With an Average of $7,338 USA Today.

Alaska has the highest average credit card debt, at $8,134.

22. Those Called the Silent Generation Take the Lowest Rank With $3,316.

The silent generation has the fewest credit card debtors, with just $3,316 on an average scale. Generation X has the largest chunk, with $8,134, followed by baby boomers with $6,245. 

23. Male Folks Have the Highest Average Credit Card Debt, $6,357.

Men fall more into debt than women, with an average of $6,357 in credit card debt. Women are not entirely out of the loop; they have close to $6,232 in credit card debt.

24. Colorado has the Least Worry About Debts, Costing $6,274.

An average credit card debt of $6,274 puts Colorado in a better spot than other states in the United States.

Conclusion

Getting a credit card makes the whole concept of buying items from stores around you an exciting one. When it comes down to going into debt, using a credit card seems like the surest bet for most people due to its ease of use and accessibility. No one wants to be in a tight debt spot, but many have been entangled in this situation. The sellers keep calling while the buyer is at a loss as to what to do. Most people who are unable to pay feel too choked to breathe freely. For many, what they earn monthly is why they turn to credit purchases. This does not erase the stress of being a credit card debtor.

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