If you’re like most Americans, you love your plastic and swiping or tapping through your day. In fact, about 74% of Americans have at least one credit card, according to the Federal Reserve Bank of New York, with the average wallet holding more than three, according to data from Experian®.
The national love affair with credit cards is built on their convenience, how they provide a line of credit to enable buying things we can’t quite afford to pay for with cash, and those enticing rewards that are often offered.
But the picture is not altogether rosy: As a nation, US citizens have more than $1.2 trillion in credit card debt. And with interest rates averaging over 20%, that debt can be hard to chip away at.
To help you better understand how credit cards work, how much credit card debt people typically have, and what are smart strategies for paying down credit card debt, keep reading. You’ll learn interesting facts as well as helpful hints.
Table of Contents
Key Points
• 46% of Americans carry credit card debt: Almost half of active credit card accounts have an outstanding balance.
• Average credit card debt is $6,731: High interest rates make repayment difficult, with balances growing over time.
• Gen Xers are most likely to carry credit card debt, with 55% saying they have a balance.
• 65% of college students have credit card debt, often due to nonessential spending.
• Research found that 33% of Americans have more credit card debt than emergency savings.
10 Facts About Credit Card Debt
Ready to learn more about credit card debt, a form of revolving debt? These 10 credit card facts will help you better understand who has how much debt and where difficulties paying the balance typically crop up.
1. Almost Half of Americans Have Outstanding Credit Card Debt
Recent research shows that 46% of Americans carry a credit card balance as of late 2025. This indicates that carrying a balance is a common situation for many Americans, even with the eye-wateringly high interest that’s charged.
Recommended: Tips for Using a Credit Card Responsibly
2. People with Credit Card Debt Owe an Average of Almost $7,000
Americans had an average credit card balance of $6,731, according to TransUnion® data. Of those with a balance, most carried it for at least a year.
Just because this is the norm, it doesn’t mean that it’s ideal: The best-case scenario is to only charge as much as you can afford to pay off in full every month.
3. It Can Take More Than a Decade to Pay Off $6,731 in Debt
Racking up credit card debt takes much less time than getting rid of it. Say that, like the average American, you have $6,731 in credit card debt, as noted above.
At an interest rate of 20% on existing, with a $150 monthly payment, it would take you 84 months — or seven years — to pay that off. And you would pay $5,773 in interest, or almost as much as the original amount you charged!
But the more you can pay each month, the faster you’ll extinguish the debt. In this example, if you increase your monthly payment to $500, you’d pay off the debt in just 16 months and only spend $955 in interest. These scenarios are, however, assuming that you are not accruing new debt and therefore paying off larger credit card bills.
4. Gen Xers Have the Most Credit Card Debt
Ready for more credit card facts? Here is how age and debt intersect. Gen Xers, the generation that includes people born between 1965 and 1980, have the highest percentage who carry credit card debt at 55%. Next in line are Millennials, born between 1981 and 1996, with 49% carrying credit card debt.
5. Alaskans Have the Highest Credit Card Debt
In a state-by-state analysis of credit card debt, Alaska residents led the pack with $8,026 per person. Those who live in Iowa were found to have the lowest at $4,774.
6. 65% of College Students Have Credit Card Debt
The habit of carrying credit card debt unfortunately starts early, with more than six out of 10 college students carrying a balance on their credit cards. Some of this may well be due to nonessential purchases, such as impulse buys, Uber rides, or fancy coffees.
7. One in Three Americans Owes More On Credit Cards Than They Have Saved for Emergencies
This may be a scary fact about debt, but one in three US adults owes more on their credit card than they have saved for emergencies. In fact, 33% say this is the case. This shows a two-sided problem: too much spending and too little saving.
Recommended: Paying Off $10,000 in Credit Card Debt
8. Richer People Have Credit Card Debt Longer
More interesting credit card debt facts: According to 2024 data, 62% of those who earn $300,000 or more a year struggle with credit card debt. Perhaps this statistic suggests that high-earners feel they have the means to handle debt and therefore don’t rush to repay it.
9. Men Have More Debt Than Women
Men have an average of $6,357 in credit card debt, while women have an average of $6,232. Perhaps not a huge difference, but so much for the myth of women shopaholics using credit cards to fill an overflowing closet with shoes.
There are many potential reasons for this difference, but some studies have found that women are less comfortable with debt. Also, there is still a gender gap in earning, which could impact spending and debt.
10. There’s a Good Chance You’ll Die With Credit Card Debt
Here’s the last of these debt facts, and it can be a grim one: Nearly three-fourths of Americans are in debt when they die, according to one benchmark study.
And 73% die with credit credit card balances. That’s not exactly a desirable legacy. Although family members don’t generally become responsible for the debt, it may be taken out of the deceased person’s estate.
Why Is Credit Card Debt So Common?
There are many reasons that Americans have so much credit card debt, from rising healthcare and educational costs to lack of emergency savings to a cultural consumerism that encourages people to live beyond their means.
Regarding that last point, you may hear about the phenomenon referred to as Fear of Missing Out or FOMO spending, which is a modern version of “keeping up with the Joneses.” In other words, because your friends, coworkers, or influencers you follow on social media are buying something, you feel you should as well.
Or perhaps part of the problem can be explained by what is known as lifestyle creep. This situation occurs when you earn more money but your spending rises too, so your wealth doesn’t grow. For example, if you took a new, higher-paying job and decided to lease a luxury car or take a couple of lavish vacations, your wealth wouldn’t increase, though your credit card balance might.
Tips on Avoiding Credit Card Debt
Perhaps these facts about debt will motivate you to work on avoiding a credit card balance. If so, the following strategies could help.
• Review different budgeting methods, and find one that works for you. Many people use the popular 50/30/20 budget rule, for example. Also, see if your bank offers tracking and budgeting tools to help you rein in spending.
• Gamify savings. You might try sleeping on it rather than making impulse buys to see if the urge to spend passes; it often does. Or go on a spending freeze for a specific period of time or for a certain kind of purchase (say, no dining out in March; no clothing purchases in April).
• Try buying with cash or your debit card vs. plastic. That will help prevent your debt from snowballing.
• Consider trying a balance transfer card, which typically gives you a period of zero interest during which time you can pay down what you owe.
• In terms of a debt payoff strategy, you might investigate getting a personal loan with a lower rate than what your card charges. That could allow you to pay off the plastic debt and then have more manageable monthly payments.
• Seek help if you are really struggling to get your debt under control. Nonprofit organizations can help you accomplish this.
The Takeaway
Now that you know some facts about credit card debt and ways to pay it off, you may be looking for a new card that better suits your financial and personal goals. Shopping around to compare features, such as interest rates and rewards, can be a wise move.
Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
What are the main causes of credit card debt?
Credit card debt can crop up in a variety of ways. Sometimes it’s because expenses get pricier, whether due to lifestyle creep or inflation. Other times, it’s not being mindful about daily spending and making impulse buys. Given how many Americans have more credit card debt than money saved, it’s a common but challenging issue.
How much does the average person have in credit card debt?
Credit card debt facts reveal different angles on this number. The average American household has $6,731 in credit card debt.
How serious is credit card debt?
Credit card debt can be very serious. It’s high-interest debt, and it can be difficult to pay off. It can make it hard for individuals to save for their future and can negatively impact their debt to income ratio, which can be an issue when applying for loans.
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