The median American household with credit card debt carries between $6,000 and $8,000

The average varies depending on which households you count. If you look only at people who carry a balance month to month, the median is roughly $6,000 to $8,000 per household. If you include everyone with a credit card — including those who pay in full each month — the number drops because many people use cards but owe nothing. The Federal Reserve's Survey of Consumer Finances, which tracks this data, shows the picture changes year to year and differs by age, income, and region.

What matters more than the national average is whether your own debt is manageable on your income. A $5,000 balance is crushing if you earn $25,000 a year and manageable if you earn $100,000. The debt-to-income ratio — what you owe divided by what you earn — is a better measure of whether you are in trouble than comparing yourself to a national figure.

Key Takeaways

  • Households that carry credit card balances typically owe between $6,000 and $8,000, though this varies by region and age group.
  • The national average includes people with no balance, so the median for people actually paying interest is higher than the mean.
  • Your own situation matters more than the average — a $4,000 balance is a crisis at $30,000 income and routine at $120,000 income.
  • Credit card debt has grown over the past decade, but the number of people carrying balances has stayed relatively stable.

How the numbers break down by age and income

Younger households (under 35) tend to carry less credit card debt than middle-aged households, partly because they have had less time to accumulate it and partly because younger people use other forms of debt like student loans. Households headed by someone aged 45 to 54 typically carry the highest balances, often in the $8,000 to $10,000 range.

Income matters sharply. Households earning under $40,000 a year who carry balances often owe $3,000 to $5,000. Households earning $40,000 to $100,000 typically owe $6,000 to $10,000. Higher-income households may carry larger absolute balances but usually owe less as a percentage of their income, which means the debt is less likely to be a crisis.

Geography also shifts the picture. Credit card debt is higher in urban areas and in states with higher costs of living, where people use credit to bridge gaps between income and expenses.

Why the average is misleading

The average credit card debt in America is pulled up by a small number of households carrying very large balances. If 100 households owe $5,000 each and one household owes $500,000, the average is $14,500 — but the median (the middle point) is still $5,000. Most people fall closer to the median than the average, which is why the median number is more useful.

The data also depends on the source. Credit card companies report different numbers than the Federal Reserve, which reports different numbers than surveys of individual households. Each method captures a different slice of reality — one might count only active accounts, another might include closed accounts, a third might rely on what people remember about their own debt.

What changed over the past decade

Total credit card debt in America has grown, partly because there are more people and partly because people are borrowing more. In 2010, total credit card debt was roughly $800 billion. By 2023, it had grown to over $1 trillion. That growth outpaced inflation and population growth, meaning the average household is borrowing more on cards than it did 13 years ago.

The number of people carrying balances has stayed relatively flat — roughly 40 to 45 percent of cardholders carry a balance in any given month. What has changed is how much those people owe. Interest rates have also risen, so the cost of carrying a balance has increased even when the balance itself stayed the same.

How to know if your debt is a problem

Compare your credit card balance to your annual income. If you owe less than 10 percent of your annual income, you are in the range most financial advisors consider manageable. If you owe 10 to 25 percent, you should have a plan to pay it down. If you owe more than 25 percent of your annual income, the debt is likely affecting your options — you may struggle to borrow for a car or home, and the interest payments are eating into money you need for other things.

Another measure is the monthly payment. If your minimum credit card payments are more than 10 to 15 percent of your monthly income, the debt is constraining your budget. If you are only paying the minimum and the balance is not shrinking, you are paying mostly interest and the debt will take years to clear.

Regional differences in credit card debt

Credit card debt is highest in states with high costs of living and urban centers: California, New York, Massachusetts, and Connecticut see higher average balances. States with lower costs of living and more rural populations typically see lower average balances. This reflects the gap between income and expenses in each region — people in expensive areas use credit to cover the difference.

However, the burden of that debt varies. A $7,000 balance in San Francisco, where median household income is over $100,000, is less crushing than a $5,000 balance in a rural area where median income is $45,000. The absolute number matters less than what percentage of income it represents.

Frequently Asked Questions

Is $10,000 in credit card debt normal?

It is above the median but not unusual for households in the $60,000 to $100,000 income range. Whether it is a problem depends on your income and how quickly you are paying it down. If you earn $80,000 and owe $10,000, it is manageable. If you earn $35,000 and owe $10,000, it is a significant burden.

How much credit card debt does the average person have?

The median household carrying a balance owes $6,000 to $8,000. This varies by age, income, and region. The average (mean) is higher because a small number of households carry very large balances that pull the average up.

Is it normal to have no credit card debt?

Yes. Roughly 55 to 60 percent of credit cardholders pay their balance in full each month and carry no debt. Having no balance is common and does not mean you are unusual or missing out.

Why does credit card debt keep growing?

Total credit card debt has grown because people are borrowing more and interest rates have risen, making existing debt more expensive. The number of people carrying balances has stayed roughly the same, but those who do carry balances owe more than they did a decade ago.

How do I know if my credit card debt is out of control?

If your credit card balance is more than 25 percent of your annual income, or if your minimum payments are more than 10 to 15 percent of your monthly income, the debt is likely constraining your options. If you are only paying minimums and the balance is not shrinking, you are paying mostly interest.