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What is the Average Credit Card Debt?

by

JG Wentworth

July 12, 2024

8 min

What is the average credit card debt

Americans are having a bit of a credit card crisis. Within the last year, we have managed to rack up record-breaking amounts of credit card debt – over $1 trillion, to be exact. In fact, having some amount of credit card debt has become deeply woven into the modern American financial experience. Very few of us make it through life completely unscathed by the temptation and convenience of paying with plastic.  

But while carrying a small revolving balance might seem inconsequential, the nationwide statistics on household credit card debt paint a grim picture for the average consumer – and the economy at large.  

This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions. 

Who owes how much? 

Every year, Experian releases detailed findings about the state of credit card debt across the United States. And their most recent 2023 report should serve as a wake-up call about this costly debt epidemic: 

The average U.S. consumer carries $6,501 in credit card balances. 

Let that number sink in. The typical American household currently owes over $6,000 just in credit card debt alone. Generationally speaking, Millennials and Generation X are on the biggest hooks: 

 

  • Millennials (27-42): $125,047 

 

 

  • Baby boomers (59-77): $94,880 

 

And make no mistake, credit card interest is the costliest kind of consumer debt. According to Forbes Advisor’s weekly credit card rates report, the average credit card interest rate is 27.65%. Of course, the annual percentage rates (APR) you pay on your own credit cards might not match up with the national average. Credit card APRs can vary widely based on a number of factors, from your credit score to your debt-to-income ratio and beyond. 

So what factors are fueling this unabated accrual of high interest card debt burdening so many households and individuals? 

 

The most common causes of credit card debt 

For many Americans, living with ongoing credit card balances has almost become a way of life due to a combination of factors like: 

  • Stagnant wages/rising Costs: With wage growth lagging inflation in many sectors, many rely on credit as a financial band-aid when earnings no longer cover basic living costs. 

 

  • Emergencies and unexpected expenses: Medical bills, sudden home/auto repairs, or other major unforeseen costs can quickly max out credit limits for those lacking adequate emergency funds. 

 

  • Easy access to credit: Seemingly endless credit card offers and credit line increases make it easy to continuously burden high-interest cards as spending expands. 

 

  • Poor financial literacy: A lack of understanding around concepts like compound interest and minimum debt payments allows balances to accumulate beyond control. 

 

So now that we understand the concerning current state of consumer credit card debt woes, what solutions are available for breaking this vicious debt cycle? 

 

Viable options to get control of card balances 

Fortunately, you have a number of potentially effective strategies at your disposal, including: 

  • Balance transfers: Moving high interest card debt to a 0% APR promotional balance transfer locks in lower interest while aggressively paying down balances. 

 

  • Debt snowball/avalanche: By ordering debts and focusing extra payments on one balance at a time, snowball or avalanche methods efficiently eliminate debts over time. 

 

  • Debt management plans: Credit counseling agencies can negotiate lower overall rates and consolidated payment plans to follow a structured payoff on your behalf. 

 

  • Debt settlement: As a last resort, creditors may accept negotiated lump-sum payoffs for less than full balances to resolve delinquent debts, though it tanks credit. 

 

  • Bankruptcy: Personal bankruptcy allows dischargement of credit card debts but comes with severe, long-lasting credit damage for years afterward. 

 

Need help? Try JG Wentworth 

If you’re one of millions of Americans struggling to manage your mounting credit card debt, we’re here to help. Chances are that if you have $10,000 or more in unsecured debt, you may be eligible for our Debt Relief Program.* We’ve helped countless individuals who felt like they didn’t have a path forward reclaim their financial freedom. Some basic perks to consider: 

  • One monthly payment 
  • We negotiate on your behalf 
  • Average debt resolution in as little as 48-60 months 
  • 24/7 support 
  • We only get paid if we settle your debt 

 

If you think you qualify for our program, give us a call today to speak with one of our dedicated debt relief specialists and get any questions you may have answered.  

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Step 1 of 4 - Debt Amount

Choose your debt amount

$10,000 $100,000+

Don’t be another credit card statistic  

While credit card debt increasingly plagues more American households, you have options to regain control. By addressing the underlying factors causing the continual accumulation of new credit card debt, proven solutions exist to escape this self-perpetuating financial quicksand. It will take equal parts discipline and dedication, but as you gain momentum in paying off your debt, you will begin to see a new financial future unfold. 

 

SOURCES CITED 

Petras, G., “Graphics show how Americans’ total credit card debt reached record high.” USA Today. February 7, 2024.  

Horymski, C., “Experian Study: Average U.S. Consumer Debt and Statistics.” Experian. February 14, 2024. 

Black, M., “What Is The Average Credit Card Interest Rate This Week? May 13, 2024.” Forbes. May 13, 2024. 

*Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required. 

Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment. 

JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy. 

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