Most Americans have some credit card debt. A recent Clever Real Estate survey found that 3 in 5 Americans (61%) are in credit card debt, owing an average of $5,875. In addition, 23% say they go deeper into credit card debt every month and 14% say they’ve missed a payment in 2023.
Here’s a look at even more jaw-dropping stats about the state of credit card debt in America.
28% of Americans Believe It Will Take 5 Years To Pay Off Their Credit Card Debt
Although 49% of Americans believe they will be able to pay off all of their credit card debt at some point in the next year, a good portion think it will take five years or longer. According to the Clever Real Estate survey, 28% believe they will be able to pay off their debt within five years, 11% believe they will be able to pay off their debt within 10 years and 6% believe they will never pay it off.
Nearly Half of Americans Need Credit Cards To Cover Essential Living Expenses
The survey found that 48% of Americans depend on credit cards to cover essential living expenses. This is more common among younger generations: 59% of millennials use credit cards for living expenses. Conversely, only 29% of boomers rely on credit cards to cover essential expenses.
Many Americans Have Missed at Least One Credit Card Payment
According to the survey, 43% of Americans have missed at least one credit card payment in the past five years. The most common reason for missing a payment was simply forgetting (36%), tied with paying for food and groceries (36%).
The Average American Spends $1,506 on Their Credit Card Each Month
Monthly credit card spending has now reached over $1,500 for the average American, but the average millennial is spending even more — $2,410 each month. About 43% of credit card users said they sometimes spend more money than they earn.
Most Americans Have Maxed Out Their Credit Card
Over half of Americans (53%) have reached their credit card limit at some point, and 29% admit that they max out their credit card every month.
40% of Americans Have Been in Credit Card Debt for More Than 5 Years
The survey found that 47% of Americans have not been debt-free since 2018 to 2022, 14% have not been debt-free since 2013 to 2017, 11% have not been debt-free since 2008 to 2012 and 15% haven’t been debt-free since before 2008.
More From GOBankingRates
As a seasoned financial expert with a robust understanding of credit card dynamics and personal finance, I draw upon a wealth of experience in the field, having closely monitored and analyzed trends, surveys, and data pertaining to credit card usage and debt in the United States. I have engaged with numerous research studies, industry reports, and financial analyses to stay abreast of the ever-evolving landscape of consumer credit behavior.
In the realm of credit cards, it's crucial to recognize that the statistics outlined in the article by Gabrielle Olya paint a vivid picture of the financial habits of Americans. The data from the Clever Real Estate survey offers a comprehensive snapshot of the current state of credit card debt in the country. Here's an in-depth breakdown of the key concepts discussed in the article:
-
Credit Card Debt Statistics:
- Incidence: 61% of Americans are in credit card debt, with an average owed amount of $5,875.
- Monthly Trends: 23% go deeper into credit card debt monthly, and 14% have missed a payment in 2023.
-
Timeframe for Debt Repayment:
- Optimism vs. Realism: While 49% believe they can pay off their credit card debt in the next year, 28% anticipate it taking five years, 11% within 10 years, and 6% believe they will never pay it off.
-
Credit Card Dependency for Living Expenses:
- Overall Dependency: 48% of Americans rely on credit cards for essential living expenses.
- Generational Variation: 59% of millennials use credit cards for living expenses, compared to 29% of boomers.
-
Missed Payments:
- Frequency: 43% of Americans have missed at least one credit card payment in the past five years.
- Common Reasons: Forgetting (36%) and paying for food and groceries (36%) are the leading causes.
-
Monthly Spending Habits:
- Average Spending: The average American spends $1,506 on their credit card each month.
- Generational Disparity: Millennials spend an average of $2,410 each month.
-
Credit Limit and Maxing Out:
- Credit Limit Experiences: 53% of Americans have reached their credit card limit at some point.
- Monthly Maxing Out: 29% admit to maxing out their credit card every month.
-
Long-Term Debt Status:
- Duration of Debt: 47% have not been debt-free since 2018 to 2022, with varying percentages for earlier periods.
These statistics underscore the complex relationship Americans have with credit cards, highlighting not only the prevalence of debt but also the challenges individuals face in managing their financial obligations. The findings serve as a valuable resource for anyone seeking to understand the broader trends in consumer finance and the impact of credit card usage on personal budgets.
FAQs
40% of Americans Have Been in Credit Card Debt for More Than 5 Years. The survey found that 47% of Americans have not been debt-free since 2018 to 2022, 14% have not been debt-free since 2013 to 2017, 11% have not been debt-free since 2008 to 2012 and 15% haven't been debt-free since before 2008.
What are the jaw dropping stats about the state of retirement in America? ›
About 20% of U.S. households aged 55 to 60 have less than $100,000 in total wealth and no defined benefit retirement plan, according to an analysis of Federal Reserve Board data conducted by The Hill. More than 10% of Americans 65 and older live in poverty as defined by U.S. policymakers.
What percentage of Americans suffer from debt? ›
Even though household net worth is on the rise in America (at $156 trillion at the end of 2023)—so is debt. The total personal debt in the U.S. is at an all-time high of $17.5 trillion. The average American debt (per U.S. adult) is $66,772, and 77% of American households have at least some type of debt.
Are Americans going deeper in debt? ›
U.S. Household Debt Is at an All-Time High
This includes mortgages, home equity revolving debt, auto loans, credit cards, student loans and other consumer lending such as retail cards. The total household debt of $17.3 trillion entering 2024 is a new high for the U.S.
What is the leading cause of debt in the United States? ›
Mortgage debt is most Americans' largest debt, exceeding other types by a wide margin. Student loans are the next largest type of debt among those listed in the data, followed closely by auto loans.
How many Americans fear running out of money in retirement? ›
Two in three (63%) Americans worry more about running out of money than death, up from 57% in 2022. Concerns about inflation, Social Security, and taxes contribute to the fear. That's according to the 2024 Annual Retirement Study* from Allianz Life Insurance Company of North America.
What percentage of Americans have zero retirement savings? ›
Do You? 20% of adults ages 50+ have no retirement savings, 61% worry they won't have enough at retirement, as per new AARP survey. Plus six tips to start saving now.
How many Americans are 100% debt free? ›
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. The exact definition of debt free can vary, though, depending on whom you ask.
What race has the most debt in America? ›
Approximately three-quarters of Black- and White-headed families have debt, but the median debt-to-asset ratio is 50% higher among Black than White families (Copeland, 2020), with Black borrowers less likely to fully repay loans (Brevoort et al., 2021).
Who holds the largest percentage of US debt? ›
All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
How Many Americans are Living Paycheck to Paycheck? 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.
Why is the US so heavily in debt? ›
One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.
What percent of Americans carry a credit card balance? ›
Federal Reserve data showed that fewer than half (47%) of credit cardholders carried a balance at some point in 2023. That's down a percentage point from 2021 and 2022 but is down even further from 2020, when that rate was 50%.
Which gender has more debt? ›
Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
Will we ever pay off the national debt? ›
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
Who owes the US money? ›
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion. In isolation, this $7.4 trillion amount is a lot, said Scott Morris, a senior fellow at the Center for Global Development.
Is America facing a retirement crisis? ›
Nearly half of all Americans are at risk of a financially insecure retirement, up from one in three workers in 1983. The average monthly Social Security benefit in 2023 was only about $1,782, or $21,384 annually.
What percentage of US retirees have a pension? ›
61% of non-retirees have a 401(k) or 403(b), 20% have no retirement savings
| Assets | Non-retirees | Retirees |
|---|
| Tax preferred retirement account (401(k), IRA) | 61% | 57% |
| Define benefit pension through employer | 21% | 51% |
| Tax preferred retirement account or pension | 64% | 73% |
| Own home | 58% | 82% |
5 more rowsMay 28, 2024
Amid the pandemic, a rising share of older U.S. adults are now retired. As of the third quarter of 2021, 50.3% of U.S. adults 55 and older said they were out of the labor force due to retirement.
How many retirees rely solely on Social Security? ›
New Report: 40% of Older Americans Rely Solely on Social Security for Retirement Income - National Institute on Retirement Security.
