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What is the average credit card debt of an American?

Published in Credit Card Debt 2 mins read

The average credit card debt for an American household is projected to be $8,674 for 2024. This figure reflects a continued upward trend in recent years.

Understanding American Credit Card Debt Trends

Average credit card debt in American households has seen notable fluctuations over the past few years, initially decreasing during the early part of the pandemic before experiencing a significant rebound and sustained increase. These figures provide insight into the financial landscape for many households across the nation.

Historical Overview of Average Credit Card Debt

To fully understand the current average, it's helpful to look at the progression of credit card debt over recent years. The data shows a clear pattern of decline followed by a consistent rise.

Year Average Credit Card Debt
2019 $7,499
Q1 2021 $6,209
2022 $7,951
2023 $8,599
2024 (Projected) $8,674

Key Observations from Recent Trends

  • Initial Decline: After peaking at $7,499 in 2019, the average debt saw a significant drop to $6,209 by the first quarter of 2021. This reduction could be attributed to various factors, including reduced spending during lockdowns and stimulus payments.
  • Rapid Rebound: Starting in 2022, credit card debt began to rise sharply, reaching $7,951. This marked a substantial increase from the 2021 low.
  • Linear Increase: The rise in debt continued linearly into 2023, hitting $8,599.
  • New Highs: The projected average for 2024, at $8,674, indicates that American households are carrying more credit card debt than in previous years, surpassing pre-pandemic levels.

Understanding the Debt Landscape

These average figures represent a broad overview and can vary widely based on individual financial situations, income levels, and spending habits. While the average provides a snapshot, it's important to remember that some households carry no credit card debt, while others may have significantly higher amounts. The consistent increase in average debt highlights a growing reliance on credit for many Americans.