Average credit card debt in the U.S.

Credit card debt is on the rise: American card balances reached $986 billion in the last three months of 2022, according to a report by the Federal Reserve Bank of New York.

That’s something of a reversal after starting the year before with markedly better credit and lower credit card debt. In the first quarter of 2021, credit card balances were a much lower $770 billion. Despite the economic uncertainty brought on by the pandemic in 2020, the average credit score also increased by 4 points in 2021, according to Experian. Credit scores have been steadily inching up since the Great Recession — a total increase of 25 points over the past decade.

But higher balances today are still a concern, and experts predict these balances will likely continue to rise.

Average credit card debt by state

Here’s a look at the states with the highest and lowest average American credit card debt, according to the most recent data from Experian. Alaska had the highest credit card debt at $6,787, and Iowa had the lowest with an average credit card balance of $4,609.

States with the highest average credit card debt:

States with the lowest average credit card debt:

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  Credit card debt balances for all 50 states

  State	Average credit card debt
  Source: Experian
  Alabama	$5,205
  Alaska	$6,787
  Arizona	$5,409
  Arkansas	$4,978
  California	$5,567
  Colorado	$5,915
  Connecticut	$6,516
  Delaware	$5,762
  Florida	$6,050
  Georgia	$5,994
  Hawaii	$5,972
  Idaho	$4,821
  Illinois	$5,698
  Indiana	$4,847
  Iowa	$4,609
  Kansas	$5,335
  Kentucky	$4,734
  Louisiana	$5,340
  Maine	$4,913
  Maryland	$6,276
  Massachusetts	$5,670
  Michigan	$4,979
  Minnesota	$5,102
  Mississippi	$4,741
  Missouri	$5,185
  Montana	$5,039
  Nebraska	$5,094
  Nevada	$5,697
  New Hampshire	$5,678
  New Jersey	$6,428
  New Mexico	$5,098
  New York	$5,883
  North Carolina	$5,439
  North Dakota	$5,183
  Ohio	$5,130
  Oklahoma	$5,428
  Oregon	$4,940
  Pennsylvania	$5,402
  Rhode Island	$5,534
  South Carolina	$5,535
  South Dakota	$4,876
  Tennessee	$5,228
  Texas	$6,194
  Utah	$5,225
  Vermont	$4,989
  Virginia	$6,249
  Washington	$5,560
  West Virginia	$4,844
  Wisconsin	$4,628
  Wyoming	$5,428

Average credit card debt by age group

According to a Q3 2021 analysis by Experian, Gen Xers carry the largest credit card balances of all five generations. Further, baby boomers saw the biggest reduction in their balances between 2020 and 2021 (-4.7 percent), and Gen Z saw the biggest increase (+11.6 percent).

Credit card debt by race

Despite carrying lower credit card debt balances, Black and Hispanic Americans are less likely to be approved for credit than white and Asian Americans, according to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2021, which was published in May 2022.

Credit card debt by educational level

Higher levels of credit card debt can also occur as a result of having more access to credit, according to the same Federal Reserve household survey. Cardholders who have completed higher levels of education likely earn more and qualify for higher credit limits than those who have fewer or no degrees.

Credit card debt today

A total of 35 percent of Americans carry credit card debt from month to month, according to a January 2023 Bankrate survey of 2,458 U.S. adults— an increase of 6 percent from 2022. Credit experts cite too much of a focus on earning credit card rewards, rather than controlling and paying off debt as a factor for this shift.

Further, the survey found 43 percent don’t know the interest rate they’re being charged on this debt. When the average credit card interest rate sits at almost 20 percent, that can be a costly mistake.

One common debt payoff strategy includes opening a balance transfer credit card that charges 0 percent interest for a set period of time. But surprisingly, 37 percent of U.S. adults with credit card debt don’t know these 0 percent balance transfer cards exist.

Fortunately, some of the best balance transfer credit cards offer 0 percent APRs for up to 18 or even 21 months, meaning cardholders can chip away at their debt without owning a dime in interest for nearly two years.

4 Ways to eliminate credit card debt

Rome wasn’t built in a day. It’ll take some time for your credit card debt repayment strategy to pay off, too. With a clear budget plan and safeguards in place to keep you from spiraling into even more debt, you can start paying off your balance in no time.

• Step 1: Take stock of your current debt situation. You can’t tackle your debt if you’re unclear on how much you actually owe. Check all of your credit card accounts and note your balances, interest rates and payment due dates. If your interest rate is steep, try calling your credit card issuer and asking for a lower rate.
• Step 2: Crunch some numbers to figure out your ideal payment. You should always aim to make at least the minimum payment on your card each month. But carrying a hefty balance over from month to month can cost you in the long run. Once you’ve figured out how your minimum payments fit into your budget, see if you can allocate a bit more toward your payment so that you’ll pay less in interest over time and shave a few months off of your repayment timeline.
• Step 3: Set yourself up for success by automating where you can. If part of the reason your debt has grown is that you’re forgetting a payment here and there, set up credit card autopay so that you never miss a payment. You can also set alerts or reminders on your phone or calendar app so that you’ll be notified when it’s almost time for you to make your payment manually.
• Step 4: Create regular financial check-ins with yourself. Set up a monthly 30-minute block to review each of your accounts, track your progress and make any adjustments to your repayment plan. Maybe you received a bonus during the month and feel comfortable paying a little extra, or you had an unexpected emergency and can only make the minimum payment this month. Whatever it is, just make sure you adjust the plan accordingly.

The bottom line

There are many factors that play a role in how much credit card debt you carry and your ability to quickly pay it off. Many Americans have credit card debt, and there’s no shame in having racked up balances in the past.

But it’s important to try to make paying down your debt a top priority, since the way that you manage your credit can determine how much access you have to it in the future — and how much it’ll cost you to pay it down. If you’re deep in debt, don’t let it continue to grow. Sit down and make a plan to pay it off as soon as possible.