How Much Credit Card Debt Does the Average American Have? (2022 Data)

Scope of Credit Card Debt | Long-Lasting Consequences | Missing Payments | The Stress of Debt | Why People Apply for Credit Cards | Lack of Credit Card Knowledge

Americans buried in credit card debt likely feel concerned — but they shouldn't feel alone.

New data shows nearly half of Americans (46%) are in credit card debt. Those in debt are an average of $6,093 under water, according to a survey of 1,001 Americans from Anytime Estimate.

With 200 million credit card holders in the U.S. alone, paying with plastic is a go-to option for Americans building credit and affording everyday purchases.^[1] But the latter has been particularly difficult in 2022 amid staggering levels of inflation.^[2]

Talk of a potential recession and general economic uncertainty has many Americans on edge. Even two-thirds of those without credit card debt (66%) worry current conditions could soon have them falling behind on card payments, according to the survey.

Read on to learn more about how credit card debt affects Americans in 2022.

Nearly Half of Americans Are in Credit Card Debt

About 46% of American credit card users carry a balance on their account from month to month.

Although that snapshot is alarming, the situation is less dire than it was a year ago, when 55% of card holders were in debt. The cost of goods may be rising in 2022, but so too are U.S. wages and employment rates.^{[3] [4]}

As a result, the share of Americans in credit card debt is back to the distressing-but-familiar pre-pandemic status quo.

That's largely where the good news ends.

Some groups in credit card debt are in worse shape than others. Millennials are 25% more likely than baby boomers to carry a balance from month to month, and low-income Americans are 16% more likely to carry a balance compared to the typical earner.

Of the 46% of Americans who carry credit card debt, their average balance is $6,093.

Among those with credit card debt, older Americans carry the most. Baby boomers report 157% more credit card debt than Gen Zers and 33% more credit card debt than millennials.

• Average American: $6,093
• Average baby boomer: $8,208
• Average millennial: $6,182
• Average Gen Z: $3,196

3 in 4 Americans Have Been in Credit Card Debt at Some Point

Americans who have never had credit card debt are in the minority — 76% of card holders say they have been in credit card debt at some point.

Millennials, in particular, are 44% more likely than baby boomers to have missed a credit card payment.

Of the 54% of Americans who aren't currently in credit card debt, two-thirds (66%) worry they could soon go into debt for the first time amid economic uncertainty:

• Extremely worried (12%)
• Moderately worried (22%)
• Slightly worried (32%)
• Not worried (34%)

Most Americans With Credit Card Debt Have Been in Debt for Years

Getting out of credit card debt can take years for many Americans.

Two-thirds of those in credit card debt (67%) have been in the red since before the pandemic. About 18% have been in credit card debt for the last 15 years (since before 2007).

Those Who Started Using Credit Cards Earlier Have Less Debt

Our survey data suggests using credit cards at a younger age may actually help card holders avoid debt later in life.

Americans who started using their cards at age 25 or younger are 13% more likely to not carry credit card debt compared to those who took out their first credit cards at a later age.

About 68% of Americans say they started using their own credit card at age 25 or younger. Americans started using their cards at age:

• 20 or younger (33%)
• 21-25 (35%)
• 26-30 (16%)
• 31-35 (9%)
• 36-40 (5%)
• Older than 40 (3%)

1 in 8 Americans Have Missed a Credit Card Payment in 2022

As inflation drives up costs for goods, many Americans are struggling to keep up with credit card payments. About 1 in 8 credit card users (12%) missed a credit card payment in the first eight months of 2022.

Millennials are being hit disproportionately hard: They are 4x more likely than baby boomers to report missing a payment in 2022 (13% vs. 3%).

Looking back further, 1 in 3 Americans (35%) have missed a credit card payment in the last five years. Of that group, 80% have missed more than one payment, and 26% have missed more than five since 2017.

At the extreme end of the spending spectrum, 3% of millennials say they have missed more than 20 payments since 2017, and an additional 3% say they "usually" miss their credit card payment.

Basic Living Expenses Are Causing Many Americans to Miss Credit Card Payments

About 46% of Americans have missed a credit card payment at some point, but that doesn't mean they're reckless spenders. In many cases, they missed a payment because they were struggling to make ends meet.

Half of Americans who have missed a credit card payment (50%) say they did so to afford essential living expenses, such as food, housing, or utilities.

One-third of respondents (37%), however, admit they missed a credit card payment simply because they forgot to pay.

Overall, the top reasons credit card users report missing payments are because they:

• Forgot to make the payment (37%)
• Had to pay for food or groceries (31%)
• Had to pay utility bills (29%)
• Had to prioritize other forms of debt (26%)
• Had to pay for an unexpected emergency (26%)
• Had to pay their rent or mortgage (25%)
• No longer had enough income to make the payment (24%)
• Spent too much on nonessentials (14%)

Compared to last year, Americans in 2022 are more likely to say they missed a payment because they didn't have enough income and less likely to say they spent too much on nonessentials.

The survey findings also reveal that the process of paying off student loans is forcing more people into credit card debt. Americans are 47% more likely than they were in 2021 to report that going to college contributed to them being in credit card debt.

It's worth watching to see how those numbers evolve following President Joe Biden's plan to forgive $10,000 to $20,000 in student loans for some borrowers.^[5]

Why Some Credit Card Users Have Never Missed a Payment

About 54% of Americans say they have never missed a credit card payment. The most common reason for never missing a payment is having enough money on hand (44%). Conversely, only 18% cite living frugally.

The reasons Americans cite for never missing credit card payments are:

• Always having enough money to make a payment (44%)
• Always paying at least the minimum payment (34%)
• Spending less than they earn (27%).
• Prioritizing credit card payments over other debt (26%)
• Making payments whenever they spend money rather than waiting until they're due (25%)
• Subscribing to auto-payments or monthly reminders (19%)
• Living frugally (18%)
• Rarely using their credit card(s) (14%)

Always having enough money to make payments was the most popular answer for Gen Z, millennials, and baby boomers.

The findings also suggest younger Americans may be more cautious about nonessential spending. About 31% of Gen Z respondents say they've never had debt because they spend less than they earn, while just 18% of baby boomers say the same.

Credit Card Debt Ranks as the Most Stressful Type of Debt

Coping with credit card debt is one thing, but to make matters worse, over 4 in 5 Americans with credit card debt (82%) are also in at least one other type of debt — the most common being auto loan debt.

Americans with credit card debt also have these types of debt:

• Auto loans (33%)
• Student loans (30%)
• Mortgage (28%)
• Personal loans (28%)
• Medical (23%)
• Some other type of debt (11%)

Americans rank credit card debt as their most stressful form of debt, ahead of personal loans and medical debt. That's no surprise considering credit cards typically have higher interest rates than other forms of debt.^[6]

Interestingly, Gen Z ranked credit card debt as their second-least stressful — likely because the generation has much less credit card debt on average than older Americans.

Overall, 84% of Americans in credit card debt are stressed about their debt, including 20% who are extremely stressed.

Some card holders are especially pessimistic about their chances of climbing out of credit card debt. About 3% of those in credit card debt say they'll never get out of debt, and 11% say it will take more than five years.

Others are more optimistic that their troubles with credit card debt are temporary — 35% of those in credit card debt believe they'll be out within a year.

Credit Card Debt Is Hurting Americans' Savings

Many Americans struggle to cobble together adequate savings, and credit card debt exacerbates the problem.

About 26% of Americans who have had credit card debt say it prevented them from building emergency savings. And 25% say it stopped them from paying off other debt.

Additionally, about 1 in 5 Americans who have had credit card debt (18%) say it prevented them from purchasing a home.

Of the 76% of Americans who have had credit card debt, the most common things it prevented them from doing are:

• Building an emergency fund / emergency savings (26%)
• Paying off other debt (e.g., medical, student loans, etc.) (25%)
• Taking a vacation (24%)
• Saving for retirement (21%)
• Purchasing a home (18%)
• Making another major purchase (17%)
• Buying a car (17%)
• Moving (14%)
• Saving for or attending college (10%)
• Starting / maintaining a small business (9%)
• Having a wedding (8%)
• Having a child (6%)

What Are the Most Common Reasons for Getting a Credit Card?

The majority of credit card users (70%) own more than one card, and 58% use two or more cards on a regular basis. Our survey also examined why people open their cards.

More than half of Americans say they've applied for a credit card to help build their credit score — making it the most common reason for signing up.

The most common reasons Americans have applied for a card include:

• Building their credit score (54%)
• Having credit in case of an emergency (48%)
• Convenience (42%)
• Sign-up bonuses, rewards points (38%)
• To cover purchases they couldn't afford (29%)
• Balance transfer to reduce their interest rates (21%)
• Fraud protection (15%)
• To cover school / university expenses (12%)
• Maxing out their other credit card(s) (9%)
• Status symbol (7%)

Baby boomers are more likely to apply to earn rewards and bonuses, while millennials are more interested in spending flexibility. Millennials are about twice as likely as boomers to apply for a credit card to cover purchases they otherwise couldn't afford (31% vs. 16%).

In addition, millennials (13%) are more than twice as likely as baby boomers (6%) to say they applied for a credit card because they maxed out other cards.

1 in 4 Credit Card Users Don't Know Their Card's Interest Rate

Despite the popularity of credit cards, many Americans lack a real understanding of their cards' policies. Nearly 2 in 5 people (37%) admit to opening a card without prior research, such as opening a card while checking out at a retail store to get a discount:

• 37% have opened new credit cards without doing background research.
• 27% don't know the interest rate on their cards.
• 17% don't know their credit score.
• 10% don't know their credit limit.

The risks of credit card use extend beyond personal ignorance, though. About 1 in 3 Americans (31%) have had their credit card information stolen.

Americans Want to Use Their Credit Cards Less Often …

Americans seem to understand that credit card use can expose them to risks, whether through theft or overspending. That may be why nearly 3 in 5 Americans (58%) say they want to decrease their credit card usage.

When possible, Americans say they prefer to make day-to-day purchases with a debit card. The most-preferred methods of payment for day-to-day purchases are:

• Debit card (37%)
• Credit card (28%)
• Cash (12%)
• PayPal (10%)
• Apple Pay (6%)
• Cash App (5%)
• Check (1%)
• Venmo (1%)

… But Nearly Half of Americans Depend on Credit Cards for Essentials

As much as Americans would like to limit their credit card usage, many simply can't afford to do so.

About 43% of Americans say they depend on their credit cards for essential living expenses, such as housing, food, and utilities.

Those costs add up quickly. The average credit card user spends $1,579 on their cards each month, with a whopping 1 in 8 (12%) saying they put more than $5,000 on their cards each month.

Overall, the average respondent in our study reports spending about 30% of the limit on their primary card each month. That's in line with advice from credit experts, who suggest limiting your credit card utilization to 30% or lower. Any higher, and you risk lowering your credit score.^[7]

1 in 3 Americans Can't Afford a $2,000 Emergency Without Borrowing

Given Americans' lack of savings, credit cards are especially important for people confronted with large, unexpected bills. About 1 in 3 Americans (32%) say they wouldn't be able to cover a $2,000 emergency without borrowing.

Asked if they could afford to pay for such an emergency, Americans say:

• No, they'd have to borrow money (e.g., credit card, loan, etc.) (32%).
• No, they'd have to pull money from retirement accounts (7%).
• Yes, they'd have enough money in their checking account (42%).
• Yes, they'd take money from non-retirement savings (20%).

Methodology

The proprietary data featured in this study comes from an online survey commissioned by Anytime Estimate. One thousand and one people who reported owning at least one credit card were surveyed Aug. 18-19, 2022. Each respondent answered up to 21 questions related to their credit card usage, debt, and purchasing habits.

About Anytime Estimate

Stay on top of your money, around the clock. Since 2009, Anytime Estimate's straightforward calculators and expert articles have simplified mortgages, refinancing, and other real estate costs — fast. In 2021, Anytime Estimate was acquired by Clever Real Estate, a free agent-matching service that has helped consumers save more than $82 million on real estate fees. Research by Anytime Estimate's Data Center has been cited by The New York Times, CNBC, MarketWatch, NPR, Apartment Therapy, Yahoo Finance, Black Enterprise, and more.

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