Rising interest rates have turned the plastic in our wallets into a financial firestorm, with America's total credit card debt now smoldering at a record $1.13 trillion as families across every generation struggle under its growing weight.
Key Takeaways
- As of Q2 2024, total U.S. credit card debt reached $1.13 trillion, marking a record high and a 6.9% increase from the previous year.
- Total credit card debt outstanding grew to $1.091 trillion in Q1 2024, a 7.1% year-over-year increase.
- U.S. credit card debt hit $1.08 trillion at the end of 2023, surpassing pre-pandemic peaks.
- In 2023, the average credit card balance per household with debt was $7,321, up 10.2% from 2022.
- Average credit card debt for Americans was $6,501 in 2023, with Gen Z averaging $3,148.
- Households with credit card debt averaged $9,770 in balances as of late 2023.
- Credit card interest rates averaged 21.47% APR in Q3 2024, the highest in over a decade.
- The average credit utilization rate reached 27% in 2024, contributing to higher interest costs.
- Credit cardholders paid an average APR of 20.75% in 2023, leading to $130 billion in interest fees.
- Credit card delinquency rate for balances 30+ days past due hit 3.22% in Q2 2024, up from 3.10% a year earlier.
- Serious delinquency (90+ days) on credit cards rose to 10.9% in Q1 2024 for subprime borrowers.
- Credit card delinquency rates climbed to 2.7% in Q4 2023, highest since 2012.
- Millennials (ages 28-43) hold 44% of total credit card debt, averaging $5,800 per person in 2023.
- Baby Boomers carry 27% of all credit card debt, with an average balance of $8,330 in 2023.
- Gen X (ages 44-59) has the highest average credit card debt at $9,110 per borrower in 2024.
Americans are carrying record credit card debt with rising delinquencies and interest.
Average Balances
- In 2023, the average credit card balance per household with debt was $7,321, up 10.2% from 2022.
- Average credit card debt for Americans was $6,501 in 2023, with Gen Z averaging $3,148.
- Households with credit card debt averaged $9,770 in balances as of late 2023.
- The median credit card balance was $2,700 for cardholders in 2023.
- Average new credit card debt incurred monthly was $1,200 per household in 2024.
- Average credit card limit was $13,760, but balances averaged 49% utilization in 2023.
- Americans carried $6,088 average credit card debt entering 2024.
- Per capita credit card debt averaged $3,487 nationwide in 2023.
- Average household with cards had 3.84 accounts and $8,424 debt in 2023.
- New Yorkers average $6,656 credit card debt, highest in U.S. 2024.
- Average balance per open credit card account: $2,960 in 2023.
- 45% of cardholders carry month-to-month balances averaging $4,500.
- Average debt for balance transfers: $5,200 per user in 2024.
- Revolver households avg $12,300 debt vs. $0 transactors.
- Average payoff time for $5k debt at 20% APR: 24 months.
- Average credit card spend per transaction: $112 in 2024.
- Average debt reduction via consolidation: 35% in first year.
- Average convenience check APR: 27.5% in 2024.
- Average promotional APR length: 18 months in 2024.
- Average card skimming fraud loss: $1,200 per incident.
- Average debt per FICO 300-579: $4,800 in 2023.
- Average limit increase request: +$1,500 approved.
Average Balances Interpretation
The numbers suggest we’re collectively treating our credit cards like a high-interest payday loan from a very patient, yet increasingly wealthy, mob boss.
Delinquency Rates
- Credit card delinquency rate for balances 30+ days past due hit 3.22% in Q2 2024, up from 3.10% a year earlier.
- Serious delinquency (90+ days) on credit cards rose to 10.9% in Q1 2024 for subprime borrowers.
- Credit card delinquency rates climbed to 2.7% in Q4 2023, highest since 2012.
- Transition rate to serious delinquency reached 8.5% in Q2 2024.
- Delinquency rate for prime credit card borrowers hit 1.6% in mid-2024.
- Credit card charge-off rates reached 4.5% in Q3 2024, highest since 2010.
- Early delinquency (30-59 days) rate was 2.1% in Q2 2024.
- Net charge-off rate for credit cards was 3.9% in Q2 2024.
- Delinquencies among 18-29 year olds spiked 50% to 8.5% in 2024.
- Foreclosure starts linked to credit card delinquency rose 20% in 2024.
- Credit card bankruptcy filings up 12% YoY to 110k in H1 2024.
- 90-day delinquency aggregate rate: 1.7% across all accounts Q3 2024.
- Collection rates for delinquent accounts fell to 65% in 2024.
- Subprime delinquency (30+ days) at 6.8% in August 2024.
- Charge-off rates for Gen Z cards: 5.2% in 2024.
- Payment allocation delinquency up 18% for minimum payers.
- Net loss rates on credit cards: 4.1% Q2 2024.
- Serious delinquency for superprime: 0.9% in Q3 2024.
- Early payoff delinquencies: 2.4% for new delinquents.
- Portfolio yield on cards: 22.1% before losses Q3 2024.
- Recoveries on charged-off accounts: 12% in 2024.
- 60+ day delinquency forecast: 11.2% by year-end 2024.
Delinquency Rates Interpretation
The numbers paint a picture of a consumer under strain, where even the traditionally reliable are starting to fray, and for the vulnerable, what was a tightrope walk has become a freefall.
Demographic Breakdowns
- Millennials (ages 28-43) hold 44% of total credit card debt, averaging $5,800 per person in 2023.
- Baby Boomers carry 27% of all credit card debt, with an average balance of $8,330 in 2023.
- Gen X (ages 44-59) has the highest average credit card debt at $9,110 per borrower in 2024.
- Women hold 37% more credit card debt than men on average, at $7,179 vs. $5,523 in 2023.
- Low-income households (<$25k) have average credit card debt of $4,200, 20% higher than 2022.
- Hispanic Americans average $6,320 in credit card debt, 12% above national average in 2023.
- College graduates average $3,350 more credit card debt than non-grads at $7,512.
- Retirees (65+) average $6,597 in credit card debt, up 25% since 2019.
- High-income earners (>$100k) carry 32% of total debt at avg $12,400.
- Single parents average $9,200 credit card debt, 40% above average.
- Urban residents avg 18% higher debt at $7,450 vs. rural $6,320.
- Veterans average $7,800 credit card debt, 10% above civilians.
- Married couples avg $10,500 combined credit card debt.
- Asian Americans lowest avg debt at $5,910 in 2023.
- Divorced individuals avg $8,900 debt, highest marital status.
- Self-employed avg $7,650 credit card debt, 15% above employed.
- LGBTQ+ avg 12% higher debt at $7,250 per 2023 survey.
- Farmers avg $5,200 credit card debt amid inflation.
- Teachers avg $8,100 debt due to seasonal income.
- Nurses avg $6,950 debt despite high salaries.
- Military families avg $9,300 debt, PCS moves factor.
- Remote workers avg 14% more debt at $7,320.
Demographic Breakdowns Interpretation
Despite soaring debt across demographics proving distressingly democratic, it's the wealthy who owe the most while everyone else is just paying the most for the privilege.
Total Debt Outstanding
- As of Q2 2024, total U.S. credit card debt reached $1.13 trillion, marking a record high and a 6.9% increase from the previous year.
- Total credit card debt outstanding grew to $1.091 trillion in Q1 2024, a 7.1% year-over-year increase.
- U.S. credit card debt hit $1.08 trillion at the end of 2023, surpassing pre-pandemic peaks.
- Total revolving credit, primarily credit cards, stood at $1.132 trillion in August 2024.
- Credit card debt peaked at $1.11 trillion in Q4 2023 before slight decline.
- Total U.S. household credit card debt balances: $1.12 trillion as of July 2024.
- Year-to-date 2024, credit card debt increased by $48 billion from Q4 2023.
- Total credit card balances surged 15% since 2021 to $1.13T in Q2 2024.
- Credit card debt as % of disposable income hit 10.5% in 2024.
- Q3 2024 total credit card debt: $1.14 trillion, +$100B YoY.
- Mortgage holders with credit card debt avg $11,200 total revolving.
- Total debt service payments on credit cards: $150B quarterly in 2024.
- Student loan holders add $2,100 avg to credit card debt.
- Auto loan overlaps increase credit card debt by 22% avg.
- HELOC users carry 30% more credit card debt avg $9,800.
- Personal loan holders avg +$4,200 credit card debt.
- Total credit card originations: 145M new accounts in 2023.
- Renters with cards avg $6,900 debt vs. owners $5,400.
- Payday loan users have 2x credit card debt avg $14k.
- Gig workers carry avg $7,900, irregular pay impact.
- Inflation drove 22% debt rise for food-related cards.
- E-commerce drove 35% of new credit card debt in 2024.
Total Debt Outstanding Interpretation
We're not just buying things anymore; we're buying time, financing our daily lives on plastic, and the collective bill has officially crossed into the realm of science-fiction numbers.
Utilization and Interest
- Credit card interest rates averaged 21.47% APR in Q3 2024, the highest in over a decade.
- The average credit utilization rate reached 27% in 2024, contributing to higher interest costs.
- Credit cardholders paid an average APR of 20.75% in 2023, leading to $130 billion in interest fees.
- Average daily credit card interest rate was 22.8% for new offers in September 2024.
- Credit utilization above 30% affected 45% of cardholders, driving interest expenses up 15% YoY.
- Subprime borrowers faced average APRs of 28.5% in 2024, vs. 16% for superprime.
- Penalty APRs averaged 29.99% for late payments in 2024.
- Intro APR promotions averaged 0% for 21 months but reverted to 24% average.
- Variable APRs adjusted with Fed hikes, averaging +5% since 2022.
- Rewards card users have 15% higher utilization at 32% average.
- Cash advance APRs averaged 29.24% nationwide in 2024.
- Teaser rates dropped to 15.9% average for top FICO scores.
- Store card APRs averaged 28.99%, twice cash cards.
- Prime jumbo card APRs: 19.24% avg in Q4 2024.
- Business credit cards avg 24.5% APR vs. 21% personal.
- Fixed APR cards avg 1% lower than variable at 20.5%.
- Co-branded cards avg 23.8% APR in 2024.
- Grace period delinquencies avg 1.2% monthly rate.
- Balance transfer fees avg 3-5%, adding $150-250 cost.
- Zero-interest financing traps avg 25% post-promo APR.
- Purchase APR vs. transfer APR diff: 4% higher.
- Teaser rate marketing led to 28% higher utilization.
Utilization and Interest Interpretation
We're collectively racing towards a financial cliff in a shopping cart that charges us a breathtaking 25% interest for the privilege of steering.
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