You Might Not Guess Which Age Group Has the Highest Average Credit Card Debt

Which age group has the highest average balance on its credit cards? Some would probably guess young adults who are new to credit and often more impulsive spenders. Or maybe those in their 40s or 50s, who tend to have higher incomes and more expenses. Both are good theories, but surprising as it may be, neither is correct.

The age group with the highest average credit card debt

Americans who are 75 and older have the highest average credit card debt, according to the Survey of Consumer Finances (SCF) by the Federal Reserve Board. They had an average balance of $8,078 as of 2019. That's the most recent year when the Federal Reserve conducted the SCF.

Here's the full data from that survey, including mean and median credit card balances for each each group:

With every age group, and especially 75 and older, there's a substantial difference between mean and median credit card debt. That's a sign the highest balances are outliers that are skewing the mean data upwards. When data is skewed like this, the median generally provides a more accurate representation of the true average.

While Americans 75 and older have the highest average credit card debt, it's likely due to outliers with especially large balances. Their median credit card debt is $2,700, tied for second-lowest with several other age groups. It's Americans from 45 to 54 who have the highest median credit card debt at $3,200.

What do to about credit card debt

Although many Americans have credit card debt, it's something you should do your best to avoid. The average credit card APR is over 20%, so even a relatively small balance can cost you quite a bit in interest charges.

If you don't have any credit card debt, keep it that way. Only spend what you can afford to pay back, and pay the full balance on your credit cards every month. By doing that, you'll stay out of debt and avoid credit card interest.

If you're carrying balances on your credit cards, aim to pay them off as quickly as possible. The faster you can do this, the less interest you'll pay. One of the most effective ways to eliminate credit card debt is to simply pay as much as you can every month on your credit cards. However, there are also a few other tips that can help speed up the process.

Stop using your credit cards

Every purchase will add to your debt -- and how much interest you're paying. Stick to using your debit card and cash until you've paid off your credit card debt. You won't be able to spend more than you can afford this way, and you'll save on interest since you aren't adding to your card balances.

Consolidate your credit card debt

Get a personal loan or a balance transfer credit card and use it to pay off your credit cards. This can save you money on interest and bring you down to one monthly payment. Here are some of the best debt consolidation options:

• Debt consolidation loans
• Balance transfer credit cards

Tighten up your spending

See which of your bills you can cut back on or eliminate entirely. Once you've reduced your spending, put all the extra money you've freed up toward your credit card debt. If you're having trouble finding places to cut back, look into budgeting apps that can give you a birds-eye view of your spending habits.

Middle-aged adults and seniors tend to have higher credit card balances, but it's an issue that affects every age group. Fortunately, it's also an issue that you can fix, and avoid going forward, with the right financial habits.