What is the average credit card debt in America?

If you have credit card debt, you may wonder how your debt compares with that of other Americans.

In the third quarter of 2022, the average American had $5,910 of credit card debt, a 13.2% increase from 2021’s average of $5,221, according to the most recent data from Experian®. The double-digit increase came after decreases in average credit card debt during the previous two years. But the new figure is still not as high as in 2019—before the pandemic—when it was $6,239.

Thanks to information from the Federal Reserve, or the Fed, and credit bureaus like Experian, it’s easy to compare credit card debt using a variety of criteria.

Key takeaways

• Across the U.S., the average credit card debt in 2022 ranged from $4,808 to $7,338.
• In 2022, Generation Z had the lowest average credit card debt while Generation X had the highest.
• Americans’ average credit card debt appears to have a direct correlation to education levels: Higher levels of education meant higher average credit card debt.
• Among racial demographics, Black non-Hispanics had the lowest average credit card debt while white non-Hispanics had the highest, according to the most recent data.

Based on location, the average credit card debt in America ranged from $4,808 to $7,338 in the third quarter of 2022. Wisconsin had the lowest average credit card debt, while Alaska had the highest average credit card debt.

Across the different age groups in 2022, Gen Z, ages 18-25, had the lowest average credit card debt, at $2,854. But Gen Z also saw the biggest credit card debt increase over the previous year, at 25.1%. Millennials were close behind, with a 23.4% increase.

Gen X, ages 42-57, had the highest average credit card debt, at $8,134.

As the Fed’s most recent Survey of Consumer Finances shows, the average credit card debt in America appears to have a direct correlation to education level: The higher the level of education, the higher the average credit card debt. For example, those without a high school diploma had the lowest debt, averaging $3,390. College graduates, on the other hand, had the highest average credit card debt at $7,940.

The Fed’s 2019 Survey of Consumer Finances shows that the average credit card debt differs across ethnicities and races. Black non-Hispanics had the lowest average credit card debt, at $3,940. White non-Hispanics had an average credit card debt of $6,940, which was the highest.

Credit cards can offer advantages like convenience and rewards. And when used responsibly, they’re also a great tool to build credit. 

But what could make credit card debt become hard to manage? Here are a few potential factors:  

• Credit use: It’s possible to use credit cards in a way that helps or hurts credit. Learning how to use a credit card responsibly by doing things like making payments on time can have a positive impact on credit.
• Unexpected emergencies: Big medical bills or a major life event like divorce or unemployment can put a strain on finances that extends to credit accounts.
• Inflation: When the prices of goods and services rise and decrease purchasing power, people may end up spending more for the same things. In turn, that could cause debt to grow.
• Interest rates: When the Fed increases the federal interest rate, the annual percentage rates (APR) for credit cards tend to follow. So it can become more expensive if you carry a balance.

If you need a hand managing or reducing credit card debt, you could try things like creating a budget, making more than the minimum payment or establishing an emergency fund.

If you’re focused on ways to pay off credit card debt, you could choose a debt payoff strategy like the debt avalanche or debt snowball methods or look into debt consolidation.

A credit card payoff calculator could help you understand how much you owe, how much interest you’re being charged and how much you can afford to pay each month.

There are also several credit card debt relief options, from contacting the credit card issuer to see if they’ll work with you to credit counseling and, if necessary, bankruptcy.

It can be helpful to know how your credit card use stacks up against other cardholders in America. But there’s no one-size-fits-all answer to the amount of credit card debt you should take on. It depends on what’s best for your personal finances and how you plan to use your credit card, among other factors.

And don’t forget, the best way to benefit from all the advantages a credit card can offer—from earning rewards to building credit—is to use it responsibly.