Average American Credit Card Debt in 2021: $5,525
By: Lyle Daly | Updated Oct. 27, 2021
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According to the most recent research, the average American credit card debt is $5,525. The average card balance has decreased by $968 from where it was before the COVID-19 pandemic, and the total U.S. credit card debt has also gone down to $787 billion.
While those are the overall numbers, they vary significantly for different demographics. We've reviewed data from government agencies and credit bureaus to find the average credit card debt by state, age, income, and much more. Keep reading for the full results.
Key findings
- Average American credit card debt: $5,525
- Average credit utilization rate: 25.2%
- State with the highest average credit card debt: Alaska ($7,089)
- State with the lowest average credit card debt: Wisconsin ($4,587)
- Generation X has average credit card debt of $7,236, the most of any generation.
- Higher income corresponds to higher average credit card balances, but consumers in the middle income brackets are the most likely to have credit card debt.
- Credit card interest rates have been rising, and the average rate is now 16.2% on interest-bearing accounts.
- Delinquency rates have been steadily decreasing, with the rate of delinquencies of 90 days or more falling the most.
- The average credit card balance has dropped by $968 since before the COVID-19 pandemic.
Average American credit card debt
The average American has a credit card balance of $5,525.
Although that's a large amount, it has been dropping over the last two years. The average balance was $6,629 in 2019 and $5,897 in 2020. That data comes from Experian and its yearly State of Credit reports.
U.S. credit card debt as a whole reached an all-time high in 2019. Since peaking at $930 billion in the fourth quarter of that year, it has fallen by over 15%, even though the total U.S. debt has kept going up.
| Year | Credit card debt | Total debt | Credit card debt percentage |
|---|---|---|---|
| 2003 | $693 billion | $7.38 trillion | 9.4% |
| 2004 | $697 billion | $8.46 trillion | 8.2% |
| 2005 | $697 billion | $9.47 trillion | 7.4% |
| 2006 | $739 billion | $10.75 trillion | 6.9% |
| 2007 | $796 billion | $11.85 trillion | 6.7% |
| 2008 | $850 billion | $12.60 trillion | 6.7% |
| 2009 | $824 billion | $12.40 trillion | 6.6% |
| 2010 | $744 billion | $11.94 trillion | 6.2% |
| 2011 | $694 billion | $11.73 trillion | 5.9% |
| 2012 | $668 billion | $11.38 trillion | 5.9% |
| 2013 | $669 billion | $11.15 trillion | 6.0% |
| 2014 | $669 billion | $11.63 trillion | 5.8% |
| 2015 | $703 billion | $11.85 trillion | 5.9% |
| 2016 | $729 billion | $12.29 trillion | 5.9% |
| 2017 | $784 billion | $12.84 trillion | 6.1% |
| 2018 | $829 billion | $13.29 trillion | 6.2% |
| 2019 | $868 billion | $13.86 trillion | 6.3% |
| 2020 | $817 billion | $14.27 trillion | 5.7% |
| 2021 | $787 billion | $14.96 trillion | 5.3% |
Data source: Federal Reserve Bank of New York (2021). Debt statistics are from the second quarter of each year.
While it has been a very gradual change, credit card debt has become a smaller portion of Americans' total household debt.
What is the average American credit card debt per household?
The average American credit card debt per household is about $6,125, based on the most recent U.S. credit card debt and household data.
Average credit card debt per household was calculated by dividing U.S. credit card debt in 2021 ($787 billion) by the most recent number of households taken in 2020 (128.45 million).
Average credit card debt by state
Credit card debt numbers vary quite a bit by state. Here's a full list of each state's average credit card balance as of 2021.
| State | Average credit card debt |
|---|---|
| Alabama | $5,258 |
| Alaska | $7,089 |
| Arkansas | $4,964 |
| Arizona | $5,414 |
| California | $5,635 |
| Colorado | $5,909 |
| Connecticut | $6,237 |
| Delaware | $5,581 |
| Florida | $5,748 |
| Georgia | $5,822 |
| Hawaii | $6,197 |
| Idaho | $5,025 |
| Illinois | $5,552 |
| Indiana | $4,796 |
| Iowa | $4,587 |
| Kansas | $5,308 |
| Kentucky | $4,772 |
| Louisiana | $5,355 |
| Maine | $4,950 |
| Maryland | $6,164 |
| Massachusetts | $5,448 |
| Michigan | $4,850 |
| Minnesota | $5,115 |
| Mississippi | $4,819 |
| Missouri | $5,117 |
| Montana | $5,223 |
| Nebraska | $4,985 |
| Nevada | $5,651 |
| New Hampshire | $5,496 |
| New Jersey | $6,115 |
| New Mexico | $5,203 |
| New York | $5,754 |
| North Carolina | $5,361 |
| North Dakota | $5,223 |
| Ohio | $4,968 |
| Oklahoma | $5,571 |
| Oregon | $5,124 |
| Pennsylvania | $5,293 |
| Rhode Island | $5,324 |
| South Carolina | $5,523 |
| South Dakota | $5,007 |
| Tennessee | $5,234 |
| Texas | $6,033 |
| Utah | $5,233 |
| Vermont | $4,963 |
| Virginia | $6,189 |
| Washington | $5,684 |
| Washington, D.C. | $6,367 |
| West Virginia | $4,831 |
| Wisconsin | $4,587 |
| Wyoming | $5,584 |
Data source: Experian (email communication, 2021).
States with the highest credit card debt
Alaska has had the highest credit card debt in recent years, and in 2021, it was 28% more than the national average.
- Alaska: $7,089
- Washington, D.C.: $6,367
- Connecticut: $6,237
- Hawaii: $6,197
- Virginia: $6,189
States with the lowest credit card debt
Wisconsin and Iowa both have 17% less credit card debt than the national average, but it's Wisconsin that's the official winner. Before rounding off, its average credit card debt beat Iowa's by a razor-thin margin of $0.08.
- Wisconsin: $4,587
- Iowa: $4,587
- Kentucky: $4,772
- Indiana: $4,796
- Mississippi: $4,819
Average credit card debt by age
Generation X carries the highest average credit card balance at $7,236. That's over $1,000 more than baby boomers, who came in second with an average balance of $6,230.
The lowest average credit card debt by age was Generation Z with $2,312. Since young adults have lower incomes on average, they also have a lower average credit limit, which at least helps with avoiding credit card debt.
| Generation | Average credit card debt |
|---|---|
| Generation Z | $2,312 |
| Millennials | $4,569 |
| Generation X | $7,236 |
| Baby Boomers | $6,230 |
| Silent Generation | $3,821 |
Data source: Experian (2021).
Average credit card debt for college students
College students have an average credit card debt of $1,183.
Because students are often on a tight budget, their credit card balances are much lower than the average. Even though that's a good sign, a lower-than-average balance can still be difficult to pay off when you have a limited income.
| Year | Average credit card debt, college students |
|---|---|
| 2016 | $903 |
| 2019 | $1,183 |
Data source: Sallie Mae (2019).
Average credit card debt by income
Americans in higher income brackets carry higher credit card balances on average.
However, it's the middle class and the upper-middle class that's more likely to have credit card debt. Among Americans in the 60th through 79th income percentiles, 56.8% have credit card debt. Those in the 40th through 59th income percentile weren't far behind, as 55% have credit card debt.
It's the Americans in the highest (90th to 100th) and lowest (under 20th) income percentiles who are least likely to carry a balance. Less than a third of each group has credit card debt.
| Income percentile | Median annual income | Average credit card debt | Percentage with credit card debt |
|---|---|---|---|
| Less than 20 | $16,290 | $3,830 | 30.5% |
| 20–39 | $35,630 | $4,650 | 45.6% |
| 40–59 | $59,050 | $4,910 | 55.0% |
| 60–79 | $95,700 | $6,990 | 56.8% |
| 80–89 | $151,700 | $9,780 | 45.9% |
| 90–100 | $290,160 | $12,600 | 32.2% |
Data source: Federal Reserve Survey of Consumer Finances (2020).
Editor's note: Data from the Survey of Consumer Finances was collected in 2019, and is the most recent available from the Federal Reserve.
Average credit card debt by level of education
Average credit card debt is higher for Americans with higher levels of education.
College graduates have the highest average credit card debt at $7,940. On the other hand, those with no high school diploma have $3,390 in average credit card debt.
The most reasonable explanation for this is each group's respective income. Median income increases at each level of education. As an example, Americans with a bachelor's degree earn over twice as much as Americans with no high school diploma. Higher income, as we saw earlier, corresponds to higher credit card debt.
| Educational attainment | Average credit card debt |
|---|---|
| College degree | $7,940 |
| Some college | $6,210 |
| High school diploma | $4,940 |
| No high school diploma | $3,390 |
| All families | $6,270 |
Data source: Federal Reserve Survey of Consumer Finances (2020).
Average credit card debt by race
White Americans have average credit card debt of $6,940, the most of any racial group.
Black Americans have the lowest average credit card debt at $3,940, and Hispanic Americans are right in between those two other groups with $5,510 in average credit card debt.
| Race/ethnicity | Average credit card debt |
|---|---|
| White, non-Hispanic | $6,940 |
| Black, non-Hispanic | $3,940 |
| Hispanic | $5,510 |
| Other | $6,320 |
| All families | $6,270 |
Data source: Federal Reserve Survey of Consumer Finances (2020).
Average credit card interest rates
The average credit card APR on interest-bearing accounts is 16.2%.
Interest-bearing accounts include all credit cards that charge interest. It excludes credit cards that aren't charging interest at that time, so 0% intro APR credit cards don't count until the introductory period ends.
| Year | Average (interest-bearing) credit card interest rate |
|---|---|
| 2017 | 13.1% |
| 2018 | 13.8% |
| 2019 | 14.7% |
| 2020 | 15.7% |
| 2021 | 16.2% |
Data source: Board of Governors of the Federal Reserve System (2021). Interest rate statistics are from the second quarter of each year.
Credit card interest rates have been steadily increasing at a rate of nearly 0.8% per year since 2017. They slowed down a bit this last year, when they grew by 0.5%.
Interest income makes up a significant chunk of credit card company earnings. It was 43% of the $176 billion credit card companies made in 2020.
Credit card delinquency rates
A credit card account is considered delinquent when it's at least 30 days past due. Although that already does significant damage to the cardholder's credit score and carries financial penalties, the consequences get worse as the card passes 60 and 90 days past due.
Credit card delinquency rates have fallen over the past two years. Delinquencies of 90 days or more have seen the best results, as they're down 63%.
| Days past due | 2019 | 2020 | 2021 |
|---|---|---|---|
| 30–59 | 3.9% | 2.4% | 2.3% |
| 60–89 | 1.9% | 1.3% | 1.0% |
| 90 or more | 6.8% | 3.8% | 2.5% |
Data source: Experian (2020).
Credit card delinquency rates by generation
Millennials and Generation X have the highest credit card delinquency rates by a large margin in 2021. Members of the Silent Generation are the least likely to be delinquent on their credit cards.
| Generation | 30–59 days | 60–89 days | 90 or more days |
|---|---|---|---|
| Generation Z | 2.12% | 0.95% | 1.73% |
| Millennials | 3.07% | 1.32% | 3.15% |
| Generation X | 3.02% | 1.25% | 3.42% |
| Baby Boomers | 1.80% | 0.77% | 2.05% |
| Silent Generation | 1.07% | 0.51% | 1.33% |
Data source: Experian (2021).
Average credit utilization rate by age
The average credit utilization rate is 25.2%.
This metric, also known as a credit utilization ratio, is your credit card balances divided by your credit limits. If you have one credit card with a $1,000 balance and a $10,000 credit limit, then your credit utilization would be 10%.
Lower credit utilization is better for your credit score, and the conventional wisdom is that you should keep it below 30%. Most generations manage that. While Gen Z, millennials, and Gen X all have averages of around 30%, the average credit utilization drops quite a bit for baby boomers and the Silent Generation.
| Generation | Average credit utilization |
|---|---|
| Generation Z | 31.1% |
| Millennials | 30.2% |
| Generation X | 29.7% |
| Baby boomers | 21.4% |
| Silent Generation | 12.6% |
| U.S. Average | 25.2% |
Data source: Experian (2020).
How the COVID-19 pandemic affected credit card debt
Since the early stages of the COVID-19 pandemic, credit card balances have declined sharply. The average credit card balance was almost 13% lower in March 2021 than it was the year before, according to a report by the Consumer Financial Protection Bureau.
The average credit card balance of $5,525 reported by Experian is a decrease of $968 from where it was prior to COVID-19.
Delinquency rates have also declined. The assistance programs that credit card companies offered during the pandemic may have played a part in helping cardholders avoid delinquencies. In April 2020, 2% of open credit card accounts started reporting assistance.
Most cardholders didn't need assistance programs for long. About 0.8% of credit card accounts transitioned out of assistance in May 2020, and another 1.1% of accounts transitioned out in June 2020.
How to get out of credit card debt
As we've seen from these credit card debt statistics, owing money to credit card companies is a very common issue. Many Americans have expensive credit card balances that are costing them interest every month.
If you're in this situation, here are some methods to consider that can help you get out of credit card debt:
- Keep your credit card charges to a minimum. Either don't use credit or only use it for necessary expenses so you don't add to your debt.
- Cut spending where you can. Look at your recent spending, see if there's anywhere you can cut back, and make a budget that you can use going forward. There are several budgeting apps that can help here. Put as much disposable income as possible towards your credit card payments.
- Look into balance transfer credit cards and debt consolidation loans. These are both financial tools that you can use to pay off debt. Balance transfer credit cards offer a 0% intro APR on credit card debt you transfer over. Debt consolidation loans typically have lower interest rates than most credit cards. They also have a fixed payment amount and length, which can provide the structure needed to eliminate credit card debt.
Sources
- Board of Governors of the Federal Reserve System (2021). "Commercial Bank Interest Rate on Credit Card Plans, Accounts Assessed Interest-Federal Funds Effective Rate."
- Consumer Financial Protection Bureau (2021). "Credit card use is still declining compared to pre-pandemic levels."
- Consumer Financial Protection Bureau (2020). "The Early Effects of the COVID-19 Pandemic on Consumer Credit."
- Experian (2020). "Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years."
- Experian (2020). "State of Credit 2020."
- Experian (2021). "State of Credit 2021."
- Federal Reserve Bank of New York (2021). "Quarterly Report on Household Debt and Credit."
- Federal Reserve Survey of Consumer Finances (2021). "2019 Survey of Consumer Finances (SCF)."
- Sallie Mae (2019). "Majoring in Money 2019."
Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
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