Here's How Much Credit Card Debt Americans Have. How Do You Compare?

Americans are struggling with credit card debt, and it's a common source of financial anxiety.

Credit card debt is a widespread financial problem. Since credit cards make it easy to borrow money, some people spend more than they can afford. Inflation has made things even worse, as many consumers have had to put more on their credit cards just to pay for their normal living expenses.

In total, Americans have $925 billion in credit card debt, according to Federal Reserve data from the third quarter of 2022. But how high are those balances? A recent survey has the answer.

How much credit card debt Americans have

In early December, U.S. News & World Report conducted a survey of people who have credit card debt. When it asked them how much debt they had, here were the responses:

• $1,999 or less: 35.3%
• $2,000 to $3,999: 20.3%
• $4,000 to $5,999: 13.6%
• $6,000 to $7,999: 9%
• $8,000 to $9,999: 6.7%
• $10,000 or more: 15.1%

The good news is that among Americans with credit card debt, the majority have balances of under $4,000. More than one-third have under $2,000. While those aren't small amounts, they're at least more manageable than larger balances.

On the other hand, 30.8% have at least $6,000 to pay back, and 15.1% are dealing with $10,000 or more in balances. That's problematic, as is the fact that 51.2% saw an increase in credit card debt in 2022. This was most often attributed to increased costs and insufficient income, or unexpected expenses.

The survey also found that most respondents were dealing with stress from their financial situation. In fact, 81.6% reported that they felt anywhere from a little bit to a lot of stress due to their credit card debt.

What to do about credit card debt

If you have any amount of credit card debt, make paying it off a priority. It might not seem like a big deal if you're on the lower end of those debt ranges. However, this type of debt can grow quickly and cost you a lot of money. Credit cards have high interest rates, which have only gotten higher in recent months, along with relatively small minimum payments.

How can you pay off credit card debt? Start by cutting unnecessary spending and putting as much as possible toward your credit cards. If you don't have much money left over each month, you'll need to see what expenses you can reduce or eliminate. Otherwise, you'll have a hard time making progress on your debt.

One method that could also help, if you have a solid credit score, is refinancing your credit card debt. There are two popular ways to do this:

• Balance transfer credit cards: Many of these credit cards offer a 0% intro APR on balance transfers. That means you can transfer over your current card balances and pay them down at a 0% APR during the intro period.
• Debt consolidation loans: These are personal loans you can use to pay off debt. A debt consolidation loan will typically have a lower interest rate than your credit cards, and this also gets you a fixed payment schedule.

Either method can help you save money on interest. You'll also only have a single monthly payment going forward. If you're currently making multiple credit card payments, trimming it down to one is much more convenient.

While debt repayment methods like these can help, remember that paying off your credit cards ultimately depends on your financial habits. If you were spending too much, you'll need to come up with a stricter budget. And if you've only been paying the minimum, you'll need to put more of your disposable income toward your credit cards until they're paid off.