The average credit card debt varies by state, race, age, and education level. In addition, it takes many months or even years to pay off a balance. Although it is impossible to pay off credit card debt completely in a short amount of time, persistent effort and the right debt relief solution can make the process more manageable.
Credit Card Debt Average
In January and February 2021, the average credit card balance for residents of the United States was $6,569, according to data from LendingTree. This includes both bank and retail cards. This average varies by state. In some states, the average card balance was less than $6,500.
Although there is no “magic number” for credit card debt, it is important to monitor your spending habits and balances on a regular basis. If your credit utilization rate is high and your interest rates are high, you may be at risk of accruing a large amount of debt.
In this case, you should consider debt relief options such as a personal loan or balance transfer cards.
Despite the average credit card debt, it is important to note that many people do not pay the full balance on their accounts. A recent survey by Experian revealed that 75% of U.S. consumers had credit card debt at the end of their first year of the pandemic.
Moreover, the average debt per credit card account holder increased by 3% over the same period, while the number of people with a balance on their account increased by 31 million.
Tips on Credit Card Debt Average
Credit card debt is a huge problem facing many American households. According to a recent report from Experian, 75% of cardholders are carrying some balance. The average balance per card was $5,315 by the end of 2020, a decrease from $6,194 the year before.
But the problem isn’t only about the size of balances. Increasing your credit score is a good way to decrease the amount of credit card debt you have.
First, pay off the card with the highest interest rate first. Most credit cards have variable rates linked to the federal funds rate and the prime rate, and these rates usually increase after a couple of billing cycles.
The average credit card interest rate is currently over 17%, which is higher than virtually every other type of consumer loan. The rate could increase as high as 19% before the end of the year.
How Much Credit Card Debt Should the Average Person Have?
According to the latest statistics from Experian, the average American has $5315 in credit card debt. This is a healthy trend, given that most consumers are getting smarter about how they spend their money and are paying down their balances.
However, most people still believe that they can pay off their credit card debt in two years or less. A new survey from Inside 1031 has also shed some light on the topic. The survey revealed that more than 50% of U.S. adults carry a balance on at least one credit card.
It is important to understand that credit card debt is an ongoing process and that you must monitor your spending habits to avoid getting into trouble. Ideally, your credit card balances should be below 10% of your net income, which is your income after taxes and expenses.
If your credit card debt exceeds this number, it can be difficult to pay your bills on time. However, there are a few tips you can follow to avoid being in such a situation.
What is the Average Credit Card Debt in 2021?
Credit card debt has become a pandemic, affecting many households in the United States. Those in Alaska, New Jersey, Kentucky, and South Dakota owe the most, while those in Iowa owe the least. LendingTree analysts studied the credit reports of 1 million consumers to find the national average.
Their analysis shows that the average card debt in each state was $6,579. The data are based on both retail and bank cards.
According to the Federal Reserve, the average credit card debt has grown to nearly $6,000 per household. This number includes people of all ages. Baby boomers and Gen Xers have the highest average debt, while the youngest consumers have the lowest.
Average Credit Card Debt Per Age?
The average credit card debt per age is $2,340 for cardholders younger than 35 years old. During these years, people often have their first credit cards with low spending limits. As they age, they start to pay off these debts and the average debt per age starts to decrease. By age 75, the average credit card debt per person is only $5,638.
While this may seem like a small amount, these people are entering the stage of life when they have to live on fixed incomes and are not as dependent on credit cards as they were during their working years.
In the latest Experian credit card debt survey, credit-card debt per age varies by gender and income level. Gen X carries the highest average credit card balance at $7,236. Meanwhile, adults 65 years and older have the lowest average credit card debt at $2,312.
Even though these demographics have different levels of debt, the average credit card debt per age is generally a positive sign.
I have given you a lot of ideas on credit card debt. What are you going to do? Get a plan to pay off the debt, pay all of it off or what> Please comment below.