If you're struggling to pay off credit card debt, you are far from alone: One in three Americans have more credit card debt than savings both in 2023 and 2024, a Bankrate survey shows.
“Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” Wilbert van der Klaauw, economic research advisor at the New York Fed, said in a news release earlier this month. “This signals increased financial stress, especially among younger and lower-income households.”
Which is higher? Your credit card debt or emergency savings?
About 36% of U.S. adults reported having more credit card debt than money in an emergencysavings account, a recent Bankrate survey found.
The amount of credit card debt versus emergency savings varies by generation. Millennials and Gen Xers are more likely than other generations to have more credit card debt than emergency savings at their disposal.
“Recognizing that the cost of carrying debt has increased significantly in the past two years and the insufficient level of emergency savings, more Americans are focusing on both paying down debt and boosting emergency savings simultaneously, rather than one to the exclusion of the other,” Bankrate Chief Financial Analyst Greg McBride said in a statement.
No matter the financial situation, 36% of Americans said they are prioritizing both paying down debt and increasing emergency savings, according to the survey.
Credit card balances increased by about $50 billion, or 4.6%, in the fourth quarter of 2023.
Credit card delinquencies, the amount of time in which cardholders fall behind in making payments, also increased.
The U.S. economy is overall steady, New York Fed researchers said, but areas exist in whichAmericans are overextended. Higher prices forfood, gas and housingcontribute to credit card debt.
Generation X has the largest credit card balances of all generations. Although each generation experienced an increase in debt between 2021 and 2022, the silent generation added the least amount, according to Bankrate.
Here's the average credit card debt owed by each generation, according to Bankrate:
Generation X has an average of $8,134 in credit card debt
Baby boomers have an average of $6,245 in credit card debt
Millennials have an average of $5,649 in credit card debt
The Silent generation (born between 1928-1946) has an average of $3,316 in credit card debt
Generation Z has an average $2,854 in credit card debt
How much credit card debt do Americans have? Americans' total credit card balance is $1.142 trillion in the second quarter of 2024, according to the latest consumer debt data from the Federal Reserve Bank of New York.
The Federal Reserve study does not provide numbers for the average credit card balance per consumer. However, according to TransUnion, this figure rose from $5,947 in the second quarter of 2023 to $6,329 in the second quarter of 2024.
A record-high percentage of Americans have more credit card debt than savings. 36% of U.S. adults have more credit card debt than emergency savings. 36% of U.S. adults are prioritizing both debt repayment and building emergency savings, as opposed to just focusing on one.
Americans are racking up credit card debt as they struggle to keep up with the cost of living, and experts say those who earn the least are the hardest hit. Total credit card balances rose 5.8% from a year ago, to $1.14 trillion, according to a recent New York Fed report.
The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.
According to our survey, roughly 28% of Americans across all four generations currently have less than $1,000 in personal savings, including emergency funds, non-workplace retirement accounts and investments.
The average credit score in the United States is 705, based on VantageScore® data from March 2024. It's a myth that you only have one credit score. In fact, you have many credit scores, because there are many different types of credit scores and scoring models. It's a good idea to check your credit scores regularly.
Based on data from the Federal Reserve Bank of New York and the U.S. Census Bureau (based on 2024 and 2023 data respectively), it can be calculated that each American household carries an average of around $8,674 in credit card debt in a year.
That breaks down into $241,815 on average in mortgage debt, and an average of $23,317 in non-mortgage debt (including credit card, student loan, auto loan and personal loan debt).
Recent MarketWatch Guides survey results indicate that 66.2% of Americans feel like they're living paycheck to paycheck. Respondents struggling to make ends meet span demographics, including genders, generations and incomes.
Key Statistics on Average Savings Account Balances
According to the Federal Reserve's 2022 Survey of Consumer Finances (SCF), Americans' average (mean) household savings account balance is $62,410. However, the median savings account balance of $8,000 might be a more accurate representation.
The average credit card balance is $10,680 per household, which is $1,744 below the all-time record, according to WalletHub's latest Credit Card Debt Study. All debt amounts on this page are adjusted for inflation, to allow for proper comparison against historical data.
Key insights on retail credit card interest rates in 2024
At 30.45%, that means carrying a balance is more expensive than ever. Certain retailers lead the way in high rates, while others offer rates comparable to or lower than regular card rates. Rates can run as high as 35.99% and as low as 10%.
Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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