Key points
- Average credit card debt in America is $7,951, based on 2022 data from the Federal Reserve and the U.S. Census Bureau.
- Credit card debt varies due to age/income/other factors, but only makes up a fraction of personal debt. The average consumer’s debt in America is $95,067.
- Generation X possesses the most credit card debt on average. The average Gen X individual has $8,134 in credit card debt.
- Alaskans have accrued the most credit card debt, with an average balance of $7,338.
- Men and women possess roughly the same amount of credit card debt.
Here’s what you need to know about the average credit card debt, how it relates to overall personal debt and what you can do to tackle yours.
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Bank of America® Customized Cash Rewards credit card
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
On Bank of America’s Secure Website
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
Welcome Bonus
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
$200
Annual Fee
$0
Regular APR
18.24% – 28.24% Variable APR on purchases and balance transfers
Credit Score
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
(700 – 749) Good, Excellent
Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
Editor’s Take
Pros
- Lengthy intro APR financing on both new purchases and balance transfers.
- Flexibility to choose your preferred cash-back category.
- Solid welcome bonus after meeting spend requirements.
Cons
- Elevated cash-back rates have a quarterly spending cap.
- Few benefits.
- There’s a foreign transaction fee.
This card’s unique rewards structure lets you choose each month which spending category from a list of six where you want to earn elevated cash back. It’s sure to be a favorite for consumers who need flexibility.
Card Details
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
- Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishing purchases.
- If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% – 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
- Contactless Cards – The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
What is the average credit card debt in the U.S.?
Based on data from the Federal Reserve Bank of New York and the U.S. Census Bureau (based on 2022 and 2021 data respectively), it can be calculated that each American household carries an average of $7,951 in credit card debt in a year.
At the end of 2019, right before the coronavirus pandemic began, that average reached $7,499. Then it plunged to $6,209 in the first quarter of 2021.
Here’s a look at how the country’s average credit card debt has changed over the last 10 years based on calculations made using fourth-quarter data:
Average credit card debt by age
Average credit card debt by gender
Average debt by state
The New York Federal Reserve doesn't break down household debt by state, but in a 2022 report by Experian, one of the three national credit reporting agencies, here's how the average balance breaks down based on where you live:
How many credit cards does the average American have?
On average, Americans hold just under four credit cards — 3.84 is the specific number, according to data from the credit bureau Experian for the third quarter of 2020. So, how many credit cards should you have? The answer will vary by individual, but as long as you can keep up with multiple payment dates and spend only what you can pay off in full each billing cycle, using multiple credit cards can help you maximize the rewards you earn.
How much debt is too much?
There's no hard-and-fast rule for how much credit card debt is too much. While it's ideal to spend only what you can afford to pay in full every month, every household has a different budget, so the same balance can affect consumers differently.
However, there are a few ways you can evaluate your situation to determine if your credit card debt burden is too heavy:
- You have a hard time paying more than the minimum amount due each month.
- You've noticed that your credit card balance is growing over time rather than shrinking.
- Your credit utilization rate — the percentage of your credit limit that you're using at a given time — is over 30%.
- You're struggling to keep up with all of your debt payments.
Tips for paying off credit card debt
If you're struggling with credit card debt, here are some actionable strategies you can use to start paying down your balances. As you research different ways to pay off credit card debt, focus on the options that work best for your financial situation and goals.
Stop using your cards
Paying off your credit cards while you're still using them is essentially taking two steps forward and one step back with each passing month.
Consider cutting up your credit cards if you're tempted to use them — you can always order new ones once you're ready to use them again. In the meantime, consider the cash-only envelope method to budget your cash flow.
"In today's economy, inflation and rising interest rates can make it challenging to stay within a budget. Keep track of your income and expenses and create a realistic budget for yourself. Sticking to a budget can help you pinpoint where you can cut unnecessary costs that can go towards paying off your debt," said Michael Hershfield, CEO and founder of Accrue Savings, which offers digital wallets that incentivize savings. "Try working within a budget, and utilize your debit card. This will assist in providing you with insight and a sense of what you are spending."
Use the debt avalanche or snowball method
With the debt avalanche method, you'll make the minimum payment on all of your cards, with an extra monthly payment toward the card with the highest interest rate. Once you've paid off that card, you'll take the total amount you were putting toward it and add that to the minimum payment on the card with the next-highest interest rate. You'll keep doing this until you've paid off all of your cards.
The debt snowball method uses much the same approach, but focuses on paying off the accounts with the lowest balances first rather than prioritizing by interest rate, so you get easy wins sooner.
Use a balance transfer credit card or consolidation loan
If you have good credit, you may be able to qualify for a credit card with an introductory 0% APR balance transfer offer or a consolidation loan with a low interest rate.
Either of these debt consolidation options can help you pay down your balance with less interest — or no interest at all, in the case of a card with a 0% APR offer. Just make sure you consider the affordability of your new repayment plan, plus any potential fees.
Consider a debt management plan
If your credit card debt is unmanageable and your credit score isn't in great shape, consider consulting with a credit counselor. They may be able to get you on a debt management plan, which can result in lower monthly payments and interest rates.
You'll make your monthly payment to the agency, which will distribute the money to your creditors. You will be required to cancel your accounts with this option, and there are modest upfront and monthly fees. But it can be a better alternative to trying to settle the debt or filing bankruptcy.
To make sure you’re working with a legitimate agency, look for a nonprofit that’s affiliated with the National Foundation for Credit Counseling or the Financial Counseling Association of America. Also, don’t confuse a debt management plan with debt settlement, with the latter being a more risky service offered by for-profit companies — a service that will likely end up damaging your credit score and can potentially bury you even deeper in debt.
Our list of the best debt management companies can help as you begin to research your options.
Frequently asked questions (FAQs)
The amount of credit card debt that feels normal to you may vary depending on your budget. Again, the best approach to using credit cards is to pay your bill on time and in full every month. But if you do carry a balance from month to month, try to keep your credit utilization rate below 10%.
On average, each U.S. household has $7,951 in credit card debt, as of this analysis. With an average of 2.6 people per household, according to the U.S. Census Bureau, that’s about $3,058 in credit card debt per person.
Of course, not every American has credit card debt or even uses a credit card. Additionally, while you may have a balance on your card when your card issuer reports your account activity to the credit bureaus, you may still be paying your bill in full, allowing you to avoid interest charges.
According to the 2022 report by Experian, Gen Xers carry the most credit card debt, with an average balance of $8,134.
The answer to this question depends on your situation and goals. Credit cards can help you build credit, and having multiple cards also allows you to take advantage of the various rewards programs and perks they offer.
But if you’re at risk of overspending, the right number of credit cards you have will be different than someone who sticks to a budget and pays their bill in full every month. Also, if you’re good at staying organized, it’ll be easier for you to manage several credit cards than someone who has a hard time keeping track of their financial accounts.
As you consider your situation, think about your spending and organizational habits to determine the right number of credit cards for you.
Editor’s Note:This article contains updated information from previously published stories:
- Here's a top reason Americans are carrying an average credit card balance of over $6,200
- Facing a double-whammy, millennials rack up credit card debt during the pandemic
- Credit card debt a regular feature on Sanders' finance reports
- As they reach adulthood, Gen Z isn't shying away from credit cards, loans and other debt
