Average Credit Card Debt Study 2024 (2024)

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Updated: Mar 12, 2024, 7:51am

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With national credit card debt numbers on the rise, it’s no surprise that individual credit card debt increased in 2023 as well. According to data released by the Federal Reserve, credit card balances rose by $50 billion in the fourth quarter of 2023 to a high of $1.13 trillion.

The Federal Reserve study does not provide numbers for the average credit card balance per consumer. However, according to Transunion, this figure rose from $5,795 in January 2023 to $6,295 in January 2024.

The average credit card interest rate on accounts with balances that assessed interest was 22.75% in November 2023, according to the Federal Reserve. And the interest rates on certain types of credit cards may be higher than average. When higher credit card debt levels meet higher interest rates, it can place a heavy financial strain on the budgets of many consumers.

According to TransUnion’s monthly credit snapshot report, these were the states with the highest and lowest credit card balances as of January 2024.

States With The Highest Average Credit Card Balances

States With The Lowest Average Credit Card Balances

A consumer’s age may also influence how much debt they carry on their credit card accounts. According to the most recent Experian data from 2023, Generation X had the highest average credit card balance of $9,123. The generation with the lowest average credit card balance was Generation Z at $3,262.

Below is an overview of the average credit card balance for each generation.

Average Credit Card Balance by Generation

Americans have more than 526 million open credit card accounts according to Q3 2022 Experian data. But the number of credit card accounts isn’t distributed evenly among different age groups.

Baby Boomers and Gen Xers have more credit cards on average compared to other consumers. Here is an overview of the average number of credit cards per age group in Q4 2022.

• Silent Generation: 3.64 Credit Cards
• Baby Boomers: 4.61 Credit Cards
• Generation X: 4.23 Credit Cards
• Millennials: 3.18 Credit Cards
• Generation Z: 1.9 Credit Cards

For more information, see our article on 2024 credit statistics.

Many small businesses rely on credit cards as a source of capital. However, a sizable portion of small businesses also use personal credit cards to fund their business. According to Hello Alice, 61% of small business owners who have a personal credit card use it to pay for business-related expenses. Furthermore, only 20% have a separate small business credit card available to use for their companies.

A 2023 Forbes Advisor study found that 46% of small business owners who used credit cards as a primary source of business financing did not consistently pay off their monthly balances in full. Another study from the JPMorgan Chase Institute found that among businesses that didn’t pay off their credit card bill in full each month, the median revolving balance was around $7,000 in 2022. However, because so many business owners use personal credit cards to finance their business expenses, it’s difficult to estimate the true average credit card debt that small businesses carry on a month-to-month basis.

Credit cards remain a popular payment method among American consumers. In April 2023, the Federal Reserve released the results of the 2022 Federal Reserve Payments Study which examines the noncash payment habits of American consumers and businesses in the previous year.

According to the study, the number of credit card payments in the United States increased by nearly 26 billion between the years 2018 and 2021. This increase represents a growth of 6.2% per year.

In 2021, the most recent year for which data is available, consumers and businesses used credit cards to make 157 billion payments in the United States. During that same year, credit cards made up 77% of non-cash payments.

Credit cards can offer many valuable benefits when you use them in a responsible manner. Below are three tips that can help you handle your credit cards like a pro to get the most out of your accounts without paying expensive interest charges or damaging your credit score.

• Establish responsible spending habits. When you use a credit card, it’s important not to spend more than you can afford to pay off in a given billing cycle. If you revolve a balance from one month to the next, you’ll owe costly interest charges to your credit card issuer (unless you’re taking advantage of a 0% APR credit card offer). A high credit card utilization ratio could also hurt your credit score. To avoid these issues, consider using a budgeting app to plan and track your spending. A simple budget can help curb overspending as you enjoy the rewards, perks and convenience your credit cards have to offer.
• Schedule automatic payments. One of the biggest mistakes you can make where your credit cards are concerned is paying your bill late. However, most credit card companies will let you schedule automatic payments, so you never have to worry about missing a due date. You can schedule auto-pay for at least the minimum amount due as a safeguard. And if you’re comfortable doing so, setting up an automatic payment for the full statement balance could help you avoid paying interest on the account. (Tip: Always confirm the payment processes each month to be safe—mistakes can happen.)

• Set up alerts. Another helpful way to avoid credit card debt (and to protect yourself in other ways) is to set up text and email alerts on your account. Your card issuer may allow you to set alerts when your due date is approaching, when your balance exceeds a certain amount, or when a large purchase occurs. These reminders could make it easier to stay on top of your spending goals and to deal with any unauthorized credit card transactions if they occur.

If you’re struggling with credit card debt, there are several ways you can work to improve your situation.

• Credit card payoff strategies could be helpful if you have a goal to reduce your credit card balances. Both the debt snowball and debt avalanche methods can help organize your debt elimination plan, save you money or improve your credit score as a bonus.
• Debt consolidation might help you speed up the debt payoff process and save money on interest as well. When you use them wisely, both balance transfer credit cards and debt consolidation loans have the potential to enhance your debt-elimination efforts.

No matter which debt payoff strategy you choose, it’s essential to avoid future overspending during your credit card payoff journey. Reviewing (or setting up) your household budget can help accomplish this goal. And making a credit card plan ahead of time can ensure you don’t spend more than you can afford to pay off when your credit card statement arrives.