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Paying a Credit Card Early: What You Need to Know

Paying a Credit Card Early: What You Need to Know

Jul 19, 2021 | Credit Cards, Resources

Our researchers found the median debt per American family to be $2,700, while the average debt stands at $6,270. The average balance for consumers is $5,315, although some of that debt may be held on joint cards and thus double-counted. Overall, Americans owe $807 billion across almost 506 million card accounts. Below, you’ll find some of the most prominent trends that emerged.

American credit card debt statistics and key findings

  • Average American family credit card debt: $6,270
  • Total outstanding U.S. consumer debt: $4.2 trillion
  • Total credit card debt: $807 billion
  • 45.4% of families carry some sort of credit card debt.
  • Families with the lowest quartile of net worth (median net worth of $310) hold an average of $4,830 in credit card debt, although only 44% have card debt.
  • The West holds the highest average credit card debt, averaging over $7,000.

Average credit card debt in America

The average credit card debt of U.S. families is $6,270, according to the most recent data from the Federal Reserve’s Survey of Consumer Finances. This information comes from data collected through 2019, representing the most reliable measure of credit card indebtedness in the U.S.

American consumer debt (billions)

Credit card debt

Total debt

Percentage of credit card debt to total debt

2003

$693

$7,555

9.2%

2004

$706

$8,833

8.0%

2005

$732

$9,792

7.5%

2006

$754

$11,111

6.8%

2007

$817

$12,133

6.7%

2008

$858

$12,675

6.8%

2009

$812

$12,279

6.6%

2010

$731

$11,844

6.2%

2011

$693

$11,661

5.9%

2012

$674

$11,310

6.0%

2013

$672

$11,280

6.0%

2014

$680

$11,710

5.8%

2015

$714

$12,065

5.9%

2016

$747

$12,350

6.0%

2017

$808

$12,955

6.2%

2018

$844

$13,512

6.2%

2019

$881

$13,952

6.3%

2020

$807

$14,353

5.6%

Source: Federal Reserve Bank of New York

Average credit card debt by state

Average credit card debt varied widely by state. The typical borrower in Alaska carries the most credit card debt — $6,617 on average. This is 10% more than Connecticut, which carries the next highest average credit card debt.

The average borrower in Iowa holds just $4,289 in credit card debt, which is the least of any state. Wisconsin and Kentucky were among other states that had the lowest average credit card debt.

Rank

State

2020 average credit card balance

29

Alabama

$5,047

1

Alaska

$6,617

22

Arizona

$5,157

37

Arkansas

$4,791

26

California

$5,120

11

Colorado

$5,541

2

Connecticut

$6,040

12

Delaware

$5,462

8

District of Columbia

$5,671

9

Florida

$5,623

7

Georgia

$5,693

10

Hawaii

$5,614

48

Idaho

$4,582

15

Illinois

$5,365

45

Indiana

$4,651

51

Iowa

$4,289

28

Kansas

$5,063

49

Kentucky

$4,521

24

Louisiana

$5,127

43

Maine

$4,676

5

Maryland

$5,977

23

Massachusetts

$5,141

40

Michigan

$4,692

39

Minnesota

$4,767

47

Mississippi

$4,587

31

Missouri

$4,950

38

Montana

$4,785

36

Nebraska

$4,819

13

Nevada

$5,422

16

New Hampshire

$5,327

4

New Jersey

$5,978

32

New Mexico

$4,948

14

New York

$5,414

25

North Carolina

$5,121

35

North Dakota

$4,865

34

Ohio

$4,888

18

Oklahoma

$5,271

42

Oregon

$4,681

27

Pennsylvania

$5,080

19

Rhode Island

$5,256

17

South Carolina

$5,310

46

South Dakota

$4,633

30

Tennessee

$5,006

6

Texas

$5,848

33

Utah

$4,900

44

Vermont

$4,653

3

Virginia

$5,992

20

Washington

$5,238

41

West Virginia

$4,686

50

Wisconsin

$4,376

21

Wyoming

$5,182

Source: Experian

Average credit card debt by age

Median credit card debt peaks for those who are between 45 and 54 years old, at $3,200.

Median credit card debt

Average credit card debt

Percentage who carry debt

Younger than 35

$1,900

$3,660

47.6%

35-44

$2,700

$5,990

50.5%

45-54

$3,200

$7,670

51.7%

55-64

$3,000

$6,880

46.6%

65-74

$2,850

$7,030

41.1%

75 or older

$2,700

$8,080

28.0%

Source: Federal Reserve Survey of Consumer Finances

Average credit card debt by income

The greater the household income, the higher the credit card debt. Individuals in the highest annual income percentile, 90th to 100th, had an average of $12,600 in credit card debt — more than three times as much as households making the least.

Income percentile

Median annual income

Percentage who have credit card debt

Average credit card debt

Less than 20

$16,290

30.5%

$3,830

20-39.9

$35,630

45.6%

$4,650

40-59.9

$59,050

55.0%

$4,910

60-79.9

$95,700

56.8%

$6,990

80-89.9

$151,700

45.9%

$9,780

90-100

$290,160

32.2%

$12,600

Source: Federal Reserve Survey of Consumer Finances

Average credit card debt by education level

People with college degrees carry higher credit card balances, even though only 43% carry credit card debt, compared with 52% who have some college and 47% who ended their education after high school.

Average credit card debt by race

People who identified as white (with no Hispanic origin) reported their families carried an average of $6,940 in credit debt — the highest amount of any racial group.

They were followed by “other” — which includes Asians, American Indians and people who identify as multi-racial — with an average credit card debt of $6,320. Black households carried the least debt with an average of $3,940, which is 37% lower than the nationwide average.

How the COVID-19 crisis changed credit card debt in America

The average debt for individual consumers dropped from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance declined in every state.

Following years of growth, both outstanding credit card debt and credit limits from issuers dropped in 2020 amid the coronavirus crisis. The balance decreases have generally been attributed to drop-offs in spending during quarantine periods and the ability to pay down balances with economic impact payments and supplemental unemployment money.

Banks decreased card limits for 34% of consumers at the start of the crisis, according to CompareCards, as a way to mitigate potential losses in uncertain economic times.

Sources

  • Experian
  • Federal Reserve
  • Federal Reserve Bank of New York
  • Federal Reserve Survey of Consumer Finances

    Our researchers found the median debt per American family to be $2,700, while the average debt stands at $6,270. The average balance for consumers is $5,315, although some of that debt may be held on joint cards and thus double-counted. Overall, Americans owe $807 billion across almost 506 million card accounts. Below, you’ll find some of the most prominent trends that emerged.

    American credit card debt statistics and key findings

    • Average American family credit card debt: $6,270
    • Total outstanding U.S. consumer debt: $4.2 trillion
    • Total credit card debt: $807 billion
    • 45.4% of families carry some sort of credit card debt.
    • Families with the lowest quartile of net worth (median net worth of $310) hold an average of $4,830 in credit card debt, although only 44% have card debt.
    • The West holds the highest average credit card debt, averaging over $7,000.

    Average credit card debt in America

    The average credit card debt of U.S. families is $6,270, according to the most recent data from the Federal Reserve’s Survey of Consumer Finances. This information comes from data collected through 2019, representing the most reliable measure of credit card indebtedness in the U.S.

    American consumer debt (billions)

    Credit card debt

    Total debt

    Percentage of credit card debt to total debt

    2003

    $693

    $7,555

    9.2%

    2004

    $706

    $8,833

    8.0%

    2005

    $732

    $9,792

    7.5%

    2006

    $754

    $11,111

    6.8%

    2007

    $817

    $12,133

    6.7%

    2008

    $858

    $12,675

    6.8%

    2009

    $812

    $12,279

    6.6%

    2010

    $731

    $11,844

    6.2%

    2011

    $693

    $11,661

    5.9%

    2012

    $674

    $11,310

    6.0%

    2013

    $672

    $11,280

    6.0%

    2014

    $680

    $11,710

    5.8%

    2015

    $714

    $12,065

    5.9%

    2016

    $747

    $12,350

    6.0%

    2017

    $808

    $12,955

    6.2%

    2018

    $844

    $13,512

    6.2%

    2019

    $881

    $13,952

    6.3%

    2020

    $807

    $14,353

    5.6%

    Source: Federal Reserve Bank of New York

    Average credit card debt by state

    Average credit card debt varied widely by state. The typical borrower in Alaska carries the most credit card debt — $6,617 on average. This is 10% more than Connecticut, which carries the next highest average credit card debt.

    The average borrower in Iowa holds just $4,289 in credit card debt, which is the least of any state. Wisconsin and Kentucky were among other states that had the lowest average credit card debt.

    Rank

    State

    2020 average credit card balance

    29

    Alabama

    $5,047

    1

    Alaska

    $6,617

    22

    Arizona

    $5,157

    37

    Arkansas

    $4,791

    26

    California

    $5,120

    11

    Colorado

    $5,541

    2

    Connecticut

    $6,040

    12

    Delaware

    $5,462

    8

    District of Columbia

    $5,671

    9

    Florida

    $5,623

    7

    Georgia

    $5,693

    10

    Hawaii

    $5,614

    48

    Idaho

    $4,582

    15

    Illinois

    $5,365

    45

    Indiana

    $4,651

    51

    Iowa

    $4,289

    28

    Kansas

    $5,063

    49

    Kentucky

    $4,521

    24

    Louisiana

    $5,127

    43

    Maine

    $4,676

    5

    Maryland

    $5,977

    23

    Massachusetts

    $5,141

    40

    Michigan

    $4,692

    39

    Minnesota

    $4,767

    47

    Mississippi

    $4,587

    31

    Missouri

    $4,950

    38

    Montana

    $4,785

    36

    Nebraska

    $4,819

    13

    Nevada

    $5,422

    16

    New Hampshire

    $5,327

    4

    New Jersey

    $5,978

    32

    New Mexico

    $4,948

    14

    New York

    $5,414

    25

    North Carolina

    $5,121

    35

    North Dakota

    $4,865

    34

    Ohio

    $4,888

    18

    Oklahoma

    $5,271

    42

    Oregon

    $4,681

    27

    Pennsylvania

    $5,080

    19

    Rhode Island

    $5,256

    17

    South Carolina

    $5,310

    46

    South Dakota

    $4,633

    30

    Tennessee

    $5,006

    6

    Texas

    $5,848

    33

    Utah

    $4,900

    44

    Vermont

    $4,653

    3

    Virginia

    $5,992

    20

    Washington

    $5,238

    41

    West Virginia

    $4,686

    50

    Wisconsin

    $4,376

    21

    Wyoming

    $5,182

    Source: Experian

    Average credit card debt by age

    Median credit card debt peaks for those who are between 45 and 54 years old, at $3,200.

    Median credit card debt

    Average credit card debt

    Percentage who carry debt

    Younger than 35

    $1,900

    $3,660

    47.6%

    35-44

    $2,700

    $5,990

    50.5%

    45-54

    $3,200

    $7,670

    51.7%

    55-64

    $3,000

    $6,880

    46.6%

    65-74

    $2,850

    $7,030

    41.1%

    75 or older

    $2,700

    $8,080

    28.0%

    Source: Federal Reserve Survey of Consumer Finances

    Average credit card debt by income

    The greater the household income, the higher the credit card debt. Individuals in the highest annual income percentile, 90th to 100th, had an average of $12,600 in credit card debt — more than three times as much as households making the least.

    Income percentile

    Median annual income

    Percentage who have credit card debt

    Average credit card debt

    Less than 20

    $16,290

    30.5%

    $3,830

    20-39.9

    $35,630

    45.6%

    $4,650

    40-59.9

    $59,050

    55.0%

    $4,910

    60-79.9

    $95,700

    56.8%

    $6,990

    80-89.9

    $151,700

    45.9%

    $9,780

    90-100

    $290,160

    32.2%

    $12,600

    Source: Federal Reserve Survey of Consumer Finances

    Average credit card debt by education level

    People with college degrees carry higher credit card balances, even though only 43% carry credit card debt, compared with 52% who have some college and 47% who ended their education after high school.

    Average credit card debt by race

    People who identified as white (with no Hispanic origin) reported their families carried an average of $6,940 in credit debt — the highest amount of any racial group.

    They were followed by “other” — which includes Asians, American Indians and people who identify as multi-racial — with an average credit card debt of $6,320. Black households carried the least debt with an average of $3,940, which is 37% lower than the nationwide average.

    How the COVID-19 crisis changed credit card debt in America

    The average debt for individual consumers dropped from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance declined in every state.

    Following years of growth, both outstanding credit card debt and credit limits from issuers dropped in 2020 amid the coronavirus crisis. The balance decreases have generally been attributed to drop-offs in spending during quarantine periods and the ability to pay down balances with economic impact payments and supplemental unemployment money.

    Banks decreased card limits for 34% of consumers at the start of the crisis, according to CompareCards, as a way to mitigate potential losses in uncertain economic times.

    Sources

 

The Credit Fighters is a Texas-based company. They have years of experience helping consumers understand and work to improve their credit and offer a 120-day money back warranty to every customer. You can call 888.624.3426 to schedule a free credit consultation with a Credit Fighter counselor today.

 

 

 

Average Number of Credit Cards Per Person: 2019 Card Ownership Statistics

Jul 18, 2021 | Credit Cards, Resources

The average American carries 2.35 credit cards and a total outstanding balance of $5,551. This average can vary depending on what part of the country a person lives, how old they are, and a few other factors. Credit card ownership also differs among income brackets, genders, and ethnicities. Below we look into specific segments of credit card holders to highlight some of our discoveries.

How Many Credit Cards Does the Average Person Have?

The average number of credit cards people own has risen since 2010, but the mean balance on those cards has decreased by $336. The table below outlines the average number of credit cards, average total balance, and balance per card for the typical American over the past few years.

Year Average Number of Credit Cards Average Total Balance Average Balance Per Card
2016 2.35 $5,551 $2,360
2015 2.24 $5,465 $2,440
2014 2.18 $4,410 $2,023
2013 2.19 $4,501 $2,055
2012 1.96 N/A N/A
2011 1.83 N/A N/A
2010 1.98 $5,887 $2,968
2007 2.57 $5,910 $2,297

We observed some notable differences among different regions and demographics. The most prominent differences exist among people of different races, ages, genders, and states of residence.

Average Number of Credit Cards by Region

The average amount of credit card accounts held by a person and the average total balance on those credit cards varied by state. Residents of Mississippi had the lowest number of credit cards open–a state average of 1.69 credit cards per person. New Jersey residents had the highest number of credit cards per person, with an average of 2.54 credit cards per person. On average, Alaska residents had a mean balance of $6,247 on their credit cards. The highest average balance of all regions surveyed, Alaska’s total was $2,575 more than Iowa, which is the state with the lowest mean balance, or $3,672.

Of the 51 regions surveyed, only 12 had fewer than 2.00 credit cards per resident. Alabama, West Virginia, Arkansas, and Oklahoma round out the top five for least credit cards per person, after Mississippi. New York, Hawaii, Massachusetts, and Connecticut join New Jersey as the states with the most credit cards per person.

An alphabetical list of all the regions included in the comparison analysis can be found below. We’ve displayed all the states from Alaska to Wyoming with the average number of credit cards per person alongside the average balance on those credit cards.

Rank State Average Number of Credit Cards Average Total Balance
29 Alaska 2.15 $6,247  
2 Alabama 1.81 $4,412  
4 Arkansas 1.85 $4,225  
27 Arizona 2.12 $4,767  
44 California 2.31 $4,779  
46 Colorado 2.34 $5,051  
47 Connecticut 2.35 $5,509  
33 D.C. 2.18 $5,753  
40 Delaware 2.24 $4,840  
39 Florida 2.23 $4,842  
17 Georgia 2.04 $5,029  
49 Hawaii 2.39 $5,107  

Average Number of Credit Cards by Age

When examined by age group, the average number of credit cards and the average balance on those credit cards rises as the consumer ages before declining again. Americans aged 51 through 70, also known as “Baby Boomers”, have the highest average number of credit cards at 2.93 with an average balance of $6,889. Americans under 21 years of age had approximately 1.07 fewer credit cards than the country average. Our previous research shows that younger generations have been struggling to qualify for credit cards, which may help to explain the low number of credit cards per person in the younger age segments.

Age Average Number of Credit Cards Average Total Balance  
21 and Under 1.29 $1,682    
22 – 35 2.02 $3,542    
36 – 50 2.56 $6,866    
51 – 70 2.93 $6,889    
71 and Over 1.91 $3,780    
U.S. Average 2.35 $5,551    

How Many Credit Cards Should I Have?

It depends on a countless amount of factors. Ultimately, there isn’t a correct number of credit cards to own, because the answer is highly individualized. Below, we outline some benefits and drawbacks of owning multiple credit cards. This is not an exhaustive list, but will help guide users to evaluate their need for an additional credit card.

Among their other advantages, credit cards offer users access to credit, security, convenience, and protection, along with the opportunity to build a credit history. New credit cards are aiming to become increasingly alluring to their users with the likes of travel perks, price matching features, and even early concert ticket access. Consumers should consider owning at least one credit card in order to take advantage of the ever-growing list of perks and features.

Benefits of More Credit Cards: One of the key benefits of having multiple credit cards is the ability to execute a transfer of its balance from one or more cards to one with a lower interest rate. Having a second credit card is also useful if you lose your first card, or the account is frozen due to suspicious activity. If you are trying to establish a credit history, opening up a new credit card can be a great way to achieve that. By opening multiple credit cards, you can take advantage of multiple rewards programs over various credit cards.

Drawbacks of More Credit Cards: While it’s true that in the long term opening up a new credit card can help you to build credit, in the short term it will decrease your average account age, a factor used when calculating your credit score—with older being better in the eyes of card issuers. Another drawback of owning multiple credit cards are the annual fees you’d be forced to pay, assuming the credit cards charged those. Tracking your spending and your payments for multiple credit cards can also become cumbersome and difficult to manage.

Credit Card Ownership Statistics

While data on the average number of credit cards by age, gender, and ethnicity is unavailable, we can still evaluate what percentage of the population has a credit card. Below we examine trends on credit card ownership amongst the aforementioned groups.

Credit Card Ownership by Income

American residents with a high income have a greater incidence of owning credit cards. Of all Americans making more than $50,000 annually, 92% own at least one credit card. Only 3% of Americans making over $200,000 don’t own a credit card. However, credit card ownership extends beyond high earners, though; 43% of people in the $1 to $4,999 income range have at least one credit card, for example:

Annual Income % of People Who Have a Credit Card
No Income 46%  
$1 to $4,999 43%  
$5,000 to $14,999 47%  
$15,000 to $24,999 64%  
$25,000 to $39,999 79%  
$40,000 to $49,999 83%  
$50,000 to $74,999 92%  
$75,000 to $99,999 94%  
$100,000 to $149,999 95%  
$150,000 to $199,999 97%  
$200,000 or Higher 97%  

Credit Card Ownership by Gender

More than 97 million women and 95 million men in the United State have at least one credit card, which represents a total of 78% and 81%, respectively, within each group’s respective gender. Women are rejected from credit card applications at a higher rate than men. When applying for a new credit card 61% of men reported feeling very confident of approval, while only 56% of women reported feeling the same level of optimism.

Credit Card Ownership by Ethnicity

Individuals who identified as Black had the lowest percentage of ownership of credit cards at 63%. Hispanics followed, who had a 73% credit card ownership rate. Individuals who racially identified as Other represented the largest group of people who own at least one credit card at 86%, which is 7% higher than the U.S. average.

Sources:

The Credit Fighters is a Texas-based company. They have years of experience helping consumers understand and work to improve their credit and offer a 120-day money back warranty to every customer. You can call 888.624.3426 to schedule a free credit consultation with a Credit Fighter counselor today.

Average Credit Score in America: 2021 Report

Jul 18, 2021 | Credit Score, Resources

The average FICO Score in America is 711 and the average VantageScore stands at 688.

Fair Isaac Corp.’s FICO Score and VantageScore are two of the most widely used scoring models in the country. Both models range between 300 and 850 — and the higher the score, the better. The average credit score varies greatly among different populations, ages and income levels, some of which are explored below.

What is the average credit score in America?

The average credit score in the U.S. is at an all-time high of 711. This coincides with what the Consumer Financial Protection Bureau defines as “prime.”

About 1 in 5 American adults either have no credit history (“credit invisible”) or are unscorable. As a result, these individuals will have difficulty obtaining new lines of credit.

In the eyes of lenders, credit scores fall into several buckets, which indicate how risky it may be to extend credit to an individual. Outside of playing a role in approvals for a loan or credit, these scores can also impact an individual’s lending terms. Perhaps the most important terms among those are interest rates.

The higher an individual’s credit score, the lower their quoted APR will typically be.

FICO credit scores break down in the following manner:

  • 800 to 850: Exceptional
  • 740 to 799: Very good
  • 670 to 739: Good
  • 580 to 669: Fair
  • 300 to 579: Very poor

This means the average credit score of 711 is in the good range.

Though the average credit score has generally improved since 2005, slight dips were seen around the Great Recession that ended in 2009. A large number of people declaring bankruptcy or defaulting on their loans would have caused their credit scores to plummet, which in turn would have affected the overall average.

Average credit score by age

Millennials (ages 24 to 39) have an average credit score of 680, while baby boomers (ages 56 to 74) have an average credit score of 736.

The average FICO Score tends to improve with age.

The average credit scores coincide with the financial situations facing younger generations. It’s usually around the millennial age range that major expenses and debt begin to rack up — such as weddings and first mortgages, among others. Despite their ages, millennials hold an average of $4,322 in credit card debt.

The other age group whose average credit score skews lower is Generation Z (ages 18 to 23). A contributing factor to this is the limited access to credit this age group faces. Following the 2009 CARD Act, it became significantly harder for 18- to 21-year-olds to open new credit card accounts. As a result, many young adults don’t begin building a credit file until later in life — driving averages down.

Americans of all ages owe debt. In fact, U.S. household debt spiked to $14.35 trillion in the third quarter of 2020 — the latest available data — amid the coronavirus pandemic, according to the Federal Reserve Bank of New York. And that debt is growing while more people remain out of work. The federal unemployment rate was 3.5% in February 2020 before spiking to 14.8% in April 2020. (It’s been dropping but was still at 6.7% in December 2020.)

Average credit score by income

The higher one’s income level, the higher their average credit score tends to be.

While debt-to-income ratio doesn’t play a direct role in determining one’s credit score, it does have an indirect one. One of the factors lenders consider when modeling an individual’s credit risk is their credit utilization — the percentage of total available credit a consumer is using month to month.

To improve one’s credit score, credit utilization should generally be kept below 30%. The lower one’s income is, the more a consumer may rely on their credit for their expenditures.

Another way income may play into credit utilization, and ultimately one’s credit score, is by determining one’s credit limit. Credit issuers look at borrowers’ incomes when deciding on the amount of revolving credit that should be issued.

The lower one’s income, the lower their line of credit is likely to be.

In turn, by having significantly lower credit limits, it becomes easier for lower-income individuals to eat up a larger portion of what’s available, increasing their credit utilization.

The graphic below shows that median credit scores are highly correlated to income.

For context:

  • Low income: Up to 50% of the area median income
  • Moderate income: Greater than 50% and up to 80% of the area median income
  • Medium income: Greater than 80% and up to 120% of the area median income
  • High income: More than 120% of the area median income

Aside from the ability to make monthly payments on time, which may be difficult, people with lower incomes have access to less credit, meaning their credit utilization would be higher with smaller debt. This, in turn, lowers credit scores, which can, in turn, lower credit availability.

Average credit scores throughout the U.S.

The lowest credit scores in America can be found in the South: Mississippi (675), Louisiana (684) and Alabama (686). Meanwhile, Minnesota (739) and Wisconsin (732) have the highest average score among U.S. states.

Rank

State

Average credit score

Average credit card debt

49

Alabama

686

$5,047

28

Alaska

714

$6,617

36

Arizona

706

$5,157

44

Arkansas

690

$4,791

26

California

716

$5,120

14

Colorado

725

$5,541

15

Connecticut

723

$6,040

33

Delaware

710

$5,462

30

District of Columbia

713

$5,671

38

Florida

701

$5,623

46

Georgia

689

$5,693

10

Hawaii

727

$5,614

Source: Experian

These were the states where at least 40% of the population was considered subprime:

  • Alabama
  • Arkansas
  • Georgia
  • Kentucky
  • Louisiana
  • Mississippi
  • Nevada
  • New Mexico
  • Oklahoma
  • South Carolina
  • Tennessee
  • Texas
  • West Virginia

Average credit score of homebuyers

The average credit score of homebuyers across the 50 states and the District of Columbia is 731. We used LendingTree data to look at the average credit score of homebuyers who took out 30-year, fixed-rate loans between January and December 2020.

The average credit score was highest in the District of Columbia (754) and Hawaii (748), and lowest in Alabama (713) and Michigan and New Mexico (both 718).

Rank

State

Average credit score

51

Alabama

713

11

Alaska

738

35

Arizona

726

28

Arkansas

729

6

California

741

16

Colorado

734

11

Connecticut

738

1

District of Columbia

754

8

Delaware

740

28

Florida

729

39

Georgia

723

2

Hawaii

748

Sources:

The Credit Fighters is a Texas-based company. They have years of experience helping consumers understand and work to improve their credit and offer a 120-day money back warranty to every customer. You can call 888.624.3426 to schedule a free credit consultation with a Credit Fighter counselor today.

Average Credit Card Debt in America: 2021

Jul 18, 2021 | Credit Cards, Debt, Resources

Our researchers found the median debt per American family to be $2,700, while the average debt stands at $6,270. The average balance for consumers is $5,315, although some of that debt may be held on joint cards and thus double-counted. Overall, Americans owe $807 billion across almost 506 million card accounts. Below, you’ll find some of the most prominent trends that emerged.

American credit card debt statistics and key findings

  • Average American family credit card debt: $6,270
  • Total outstanding U.S. consumer debt: $4.2 trillion
  • Total credit card debt: $807 billion
  • 45.4% of families carry some sort of credit card debt.
  • Families with the lowest quartile of net worth (median net worth of $310) hold an average of $4,830 in credit card debt, although only 44% have card debt.
  • The West holds the highest average credit card debt, averaging over $7,000.

Average credit card debt in America

The average credit card debt of U.S. families is $6,270, according to the most recent data from the Federal Reserve’s Survey of Consumer Finances. This information comes from data collected through 2019, representing the most reliable measure of credit card indebtedness in the U.S.

American consumer debt (billions)

Credit card debt

Total debt

Percentage of credit card debt to total debt

2003

$693

$7,555

9.2%

2004

$706

$8,833

8.0%

2005

$732

$9,792

7.5%

2006

$754

$11,111

6.8%

2007

$817

$12,133

6.7%

2008

$858

$12,675

6.8%

2009

$812

$12,279

6.6%

2010

$731

$11,844

6.2%

2011

$693

$11,661

5.9%

2012

$674

$11,310

6.0%

2013

$672

$11,280

6.0%

2014

$680

$11,710

5.8%

2015

$714

$12,065

5.9%

2016

$747

$12,350

6.0%

2017

$808

$12,955

6.2%

2018

$844

$13,512

6.2%

2019

$881

$13,952

6.3%

2020

$807

$14,353

5.6%

Source: Federal Reserve Bank of New York

Average credit card debt by state

Average credit card debt varied widely by state. The typical borrower in Alaska carries the most credit card debt — $6,617 on average. This is 10% more than Connecticut, which carries the next highest average credit card debt.

The average borrower in Iowa holds just $4,289 in credit card debt, which is the least of any state. Wisconsin and Kentucky were among other states that had the lowest average credit card debt.

Rank

State

2020 average credit card balance

29

Alabama

$5,047

1

Alaska

$6,617

22

Arizona

$5,157

37

Arkansas

$4,791

26

California

$5,120

11

Colorado

$5,541

2

Connecticut

$6,040

12

Delaware

$5,462

8

District of Columbia

$5,671

9

Florida

$5,623

7

Georgia

$5,693

10

Hawaii

$5,614

48

Idaho

$4,582

15

Illinois

$5,365

45

Indiana

$4,651

51

Iowa

$4,289

28

Kansas

$5,063

49

Kentucky

$4,521

24

Louisiana

$5,127

43

Maine

$4,676

5

Maryland

$5,977

23

Massachusetts

$5,141

40

Michigan

$4,692

39

Minnesota

$4,767

47

Mississippi

$4,587

31

Missouri

$4,950

38

Montana

$4,785

36

Nebraska

$4,819

13

Nevada

$5,422

16

New Hampshire

$5,327

4

New Jersey

$5,978

32

New Mexico

$4,948

14

New York

$5,414

25

North Carolina

$5,121

35

North Dakota

$4,865

34

Ohio

$4,888

18

Oklahoma

$5,271

42

Oregon

$4,681

27

Pennsylvania

$5,080

19

Rhode Island

$5,256

17

South Carolina

$5,310

46

South Dakota

$4,633

30

Tennessee

$5,006

6

Texas

$5,848

33

Utah

$4,900

44

Vermont

$4,653

3

Virginia

$5,992

20

Washington

$5,238

41

West Virginia

$4,686

50

Wisconsin

$4,376

21

Wyoming

$5,182

Source: Experian

Average credit card debt by age

Median credit card debt peaks for those who are between 45 and 54 years old, at $3,200.

Median credit card debt

Average credit card debt

Percentage who carry debt

Younger than 35

$1,900

$3,660

47.6%

35-44

$2,700

$5,990

50.5%

45-54

$3,200

$7,670

51.7%

55-64

$3,000

$6,880

46.6%

65-74

$2,850

$7,030

41.1%

75 or older

$2,700

$8,080

28.0%

Source: Federal Reserve Survey of Consumer Finances

Average credit card debt by income

The greater the household income, the higher the credit card debt. Individuals in the highest annual income percentile, 90th to 100th, had an average of $12,600 in credit card debt — more than three times as much as households making the least.

Income percentile

Median annual income

Percentage who have credit card debt

Average credit card debt

Less than 20

$16,290

30.5%

$3,830

20-39.9

$35,630

45.6%

$4,650

40-59.9

$59,050

55.0%

$4,910

60-79.9

$95,700

56.8%

$6,990

80-89.9

$151,700

45.9%

$9,780

90-100

$290,160

32.2%

$12,600

Source: Federal Reserve Survey of Consumer Finances

Average credit card debt by education level

People with college degrees carry higher credit card balances, even though only 43% carry credit card debt, compared with 52% who have some college and 47% who ended their education after high school.

Average credit card debt by race

People who identified as white (with no Hispanic origin) reported their families carried an average of $6,940 in credit debt — the highest amount of any racial group.

They were followed by “other” — which includes Asians, American Indians and people who identify as multi-racial — with an average credit card debt of $6,320. Black households carried the least debt with an average of $3,940, which is 37% lower than the nationwide average.

How the COVID-19 crisis changed credit card debt in America

The average debt for individual consumers dropped from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance declined in every state.

Following years of growth, both outstanding credit card debt and credit limits from issuers dropped in 2020 amid the coronavirus crisis. The balance decreases have generally been attributed to drop-offs in spending during quarantine periods and the ability to pay down balances with economic impact payments and supplemental unemployment money.

Banks decreased card limits for 34% of consumers at the start of the crisis, according to CompareCards, as a way to mitigate potential losses in uncertain economic times.

Sources

  • Experian
  • Federal Reserve
  • Federal Reserve Bank of New York
  • Federal Reserve Survey of Consumer Finances

    Our researchers found the median debt per American family to be $2,700, while the average debt stands at $6,270. The average balance for consumers is $5,315, although some of that debt may be held on joint cards and thus double-counted. Overall, Americans owe $807 billion across almost 506 million card accounts. Below, you’ll find some of the most prominent trends that emerged.

    American credit card debt statistics and key findings

    • Average American family credit card debt: $6,270
    • Total outstanding U.S. consumer debt: $4.2 trillion
    • Total credit card debt: $807 billion
    • 45.4% of families carry some sort of credit card debt.
    • Families with the lowest quartile of net worth (median net worth of $310) hold an average of $4,830 in credit card debt, although only 44% have card debt.
    • The West holds the highest average credit card debt, averaging over $7,000.

    Average credit card debt in America

    The average credit card debt of U.S. families is $6,270, according to the most recent data from the Federal Reserve’s Survey of Consumer Finances. This information comes from data collected through 2019, representing the most reliable measure of credit card indebtedness in the U.S.

    American consumer debt (billions)

    Credit card debt

    Total debt

    Percentage of credit card debt to total debt

    2003

    $693

    $7,555

    9.2%

    2004

    $706

    $8,833

    8.0%

    2005

    $732

    $9,792

    7.5%

    2006

    $754

    $11,111

    6.8%

    2007

    $817

    $12,133

    6.7%

    2008

    $858

    $12,675

    6.8%

    2009

    $812

    $12,279

    6.6%

    2010

    $731

    $11,844

    6.2%

    2011

    $693

    $11,661

    5.9%

    2012

    $674

    $11,310

    6.0%

    2013

    $672

    $11,280

    6.0%

    2014

    $680

    $11,710

    5.8%

    2015

    $714

    $12,065

    5.9%

    2016

    $747

    $12,350

    6.0%

    2017

    $808

    $12,955

    6.2%

    2018

    $844

    $13,512

    6.2%

    2019

    $881

    $13,952

    6.3%

    2020

    $807

    $14,353

    5.6%

    Source: Federal Reserve Bank of New York

    Average credit card debt by state

    Average credit card debt varied widely by state. The typical borrower in Alaska carries the most credit card debt — $6,617 on average. This is 10% more than Connecticut, which carries the next highest average credit card debt.

    The average borrower in Iowa holds just $4,289 in credit card debt, which is the least of any state. Wisconsin and Kentucky were among other states that had the lowest average credit card debt.

    Rank

    State

    2020 average credit card balance

    29

    Alabama

    $5,047

    1

    Alaska

    $6,617

    22

    Arizona

    $5,157

    37

    Arkansas

    $4,791

    26

    California

    $5,120

    11

    Colorado

    $5,541

    2

    Connecticut

    $6,040

    12

    Delaware

    $5,462

    8

    District of Columbia

    $5,671

    9

    Florida

    $5,623

    7

    Georgia

    $5,693

    10

    Hawaii

    $5,614

    48

    Idaho

    $4,582

    15

    Illinois

    $5,365

    45

    Indiana

    $4,651

    51

    Iowa

    $4,289

    28

    Kansas

    $5,063

    49

    Kentucky

    $4,521

    24

    Louisiana

    $5,127

    43

    Maine

    $4,676

    5

    Maryland

    $5,977

    23

    Massachusetts

    $5,141

    40

    Michigan

    $4,692

    39

    Minnesota

    $4,767

    47

    Mississippi

    $4,587

    31

    Missouri

    $4,950

    38

    Montana

    $4,785

    36

    Nebraska

    $4,819

    13

    Nevada

    $5,422

    16

    New Hampshire

    $5,327

    4

    New Jersey

    $5,978

    32

    New Mexico

    $4,948

    14

    New York

    $5,414

    25

    North Carolina

    $5,121

    35

    North Dakota

    $4,865

    34

    Ohio

    $4,888

    18

    Oklahoma

    $5,271

    42

    Oregon

    $4,681

    27

    Pennsylvania

    $5,080

    19

    Rhode Island

    $5,256

    17

    South Carolina

    $5,310

    46

    South Dakota

    $4,633

    30

    Tennessee

    $5,006

    6

    Texas

    $5,848

    33

    Utah

    $4,900

    44

    Vermont

    $4,653

    3

    Virginia

    $5,992

    20

    Washington

    $5,238

    41

    West Virginia

    $4,686

    50

    Wisconsin

    $4,376

    21

    Wyoming

    $5,182

    Source: Experian

    Average credit card debt by age

    Median credit card debt peaks for those who are between 45 and 54 years old, at $3,200.

    Median credit card debt

    Average credit card debt

    Percentage who carry debt

    Younger than 35

    $1,900

    $3,660

    47.6%

    35-44

    $2,700

    $5,990

    50.5%

    45-54

    $3,200

    $7,670

    51.7%

    55-64

    $3,000

    $6,880

    46.6%

    65-74

    $2,850

    $7,030

    41.1%

    75 or older

    $2,700

    $8,080

    28.0%

    Source: Federal Reserve Survey of Consumer Finances

    Average credit card debt by income

    The greater the household income, the higher the credit card debt. Individuals in the highest annual income percentile, 90th to 100th, had an average of $12,600 in credit card debt — more than three times as much as households making the least.

    Income percentile

    Median annual income

    Percentage who have credit card debt

    Average credit card debt

    Less than 20

    $16,290

    30.5%

    $3,830

    20-39.9

    $35,630

    45.6%

    $4,650

    40-59.9

    $59,050

    55.0%

    $4,910

    60-79.9

    $95,700

    56.8%

    $6,990

    80-89.9

    $151,700

    45.9%

    $9,780

    90-100

    $290,160

    32.2%

    $12,600

    Source: Federal Reserve Survey of Consumer Finances

    Average credit card debt by education level

    People with college degrees carry higher credit card balances, even though only 43% carry credit card debt, compared with 52% who have some college and 47% who ended their education after high school.

    Average credit card debt by race

    People who identified as white (with no Hispanic origin) reported their families carried an average of $6,940 in credit debt — the highest amount of any racial group.

    They were followed by “other” — which includes Asians, American Indians and people who identify as multi-racial — with an average credit card debt of $6,320. Black households carried the least debt with an average of $3,940, which is 37% lower than the nationwide average.

    How the COVID-19 crisis changed credit card debt in America

    The average debt for individual consumers dropped from $6,194 in 2019 to $5,315 in 2020. In fact, the average balance declined in every state.

    Following years of growth, both outstanding credit card debt and credit limits from issuers dropped in 2020 amid the coronavirus crisis. The balance decreases have generally been attributed to drop-offs in spending during quarantine periods and the ability to pay down balances with economic impact payments and supplemental unemployment money.

    Banks decreased card limits for 34% of consumers at the start of the crisis, according to CompareCards, as a way to mitigate potential losses in uncertain economic times.

    Sources

 

The Credit Fighters is a Texas-based company. They have years of experience helping consumers understand and work to improve their credit and offer a 120-day money back warranty to every customer. You can call 888.624.3426 to schedule a free credit consultation with a Credit Fighter counselor today.

 

 

 

Average Cost of a Wedding: By State and Feature

Jul 18, 2021 | Budgeting Tips, Resources

The average cost of a wedding in 2020 was $20,300, a $4,400 per-wedding decrease from the year before. Many factors combine to determine the cost of a wedding, including the size and location of the venue, the number of guests, the food and entertainment — not to mention additional costs that are up to the wedding party’s preferences.

Below, we have listed the average cost of a wedding by state and metro, along with per-guest costs. Depending on location, the cost of a typical wedding varies by $18,063. Researchers also broke down the most and least expensive features that are commonly included in the overall cost of a wedding.

The average cost of a wedding, by state

Depending on where you get married, the cost of your wedding can vary significantly. Across the country, the average cost of a wedding was $20,300, but the cost can vary by as much as $18,063 depending on the state in which the ceremony and reception take place.

Graphic shows only the 10 most and least expensive states for weddings, on average, separated by the “Average” bar.

The most expensive state to get married in is Massachusetts, where the average cost of a wedding is $30,489. Along with New Jersey, these two states are the only places where the average cost of a wedding is more than $30,000. Conversely, the cheapest state to get married in is Arkansas, closely followed by West Virginia.

Many of the most expensive states to host a wedding are on the East Coast. Four of the five most expensive states — aside from the District of Columbia — are in the Northeast. California and Hawaii, the eighth and ninth most expensive states for a wedding, are the only states in the top 10 that are west of the Mississippi River.

Seven of the 10 cheapest places to get married are in the South, while the other three states among the most affordable places to get married are in the West — New Mexico, Montana and Nevada.

The average cost of a wedding in the largest metros

Even among the 20 largest U.S. metros, the average cost of a wedding can vary significantly. The difference in the average cost of a wedding in the most and least expensive of the largest metros is $13,653. The metro with the cheapest weddings is Tampa-St.Petersburg-Clearwater in Florida. The cost of a wedding here is $20,044. On the other hand, the average cost of a wedding in the San Francisco-Oakland-Berkeley metro in California is $33,697 — the most expensive among the 20 metros.

MSA

Average cost

New York-Newark-Jersey City, NY-NJ-PA

$33,446

Los Angeles-Long Beach-Anaheim, CA

$30,492

Chicago-Joliet-Naperville, IL-IN-WI

$25,752

Dallas-Fort Worth-Arlington, TX

$25,786

Houston-The Woodlands-Sugar Land, TX

$24,087

Washington-Arlington-Alexandria, DC-VA-MD-WV

$21,158

Miami-Fort Lauderdale-West Palm Beach, FL

$33,401

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

$31,895

Atlanta-Sandy Springs-Roswell, GA

$23,593

Boston-Cambridge-Quincy, MA-NH

$32,451

Phoenix-Mesa-Chandler, AZ

$23,856

San Francisco-Oakland-Berkeley, CA

$33,697

Ordered by population size

Most expensive wedding features

The overall cost of a wedding depends on the scale of the ceremony and reception. While the average cost of a wedding in 2020 was $20,300, this cost can quickly rise as the wedding becomes more extravagant. The most expensive parts of most weddings are costs associated with the reception venue, including the cost of renting materials, including tables and chairs, and serving food or alcohol.

  1. Reception venue

The reception venue isn’t typically a single, large cost but a series of above-average expenses that add up quickly, especially if the bridal party opts for a package deal from their venue. Taken in sum, the costs of renting a venue, catering the event and providing other related necessaries makes this feature of weddings the most expensive. Common costs associated with a wedding reception venue include:

  • Venue rental: With thousands of dollars typically spent to reserve a venue for a wedding, it’s often one of the priciest components of a reception. The typical cost of a venue amounts to $9,261, making it among the most expensive costs related to weddings. When couples have to rent tables and chairs and other furniture to fill out a venue hall, the cost increases.
  • Catered food and drink: Making sure that guests are well-fed is one of the most expensive parts of any wedding — particularly if a wedding venue requires the couple to hire their own caterer. Expect to spend an average of $4,075 for a wedding of 66 guests — $62 a plate. As wedding sizes return to pre-pandemic sizes, the cost of food (per plate and in total) will rise. Of course, the cost of food is likely to increase for more extravagant weddings. But hosts could save on the cost of the venue by offering a cash bar as opposed to an open bar.
  1. Engagement ring

There may be more variability in price with engagement rings than almost any other wedding-related expense. The cost of an engagement ring averaged $5,204 per wedding, but the cost of a ring depends on the size and type of stone used, the cut, the manufacturer and other factors that could easily catapult the price of a ring into the tens of thousands of dollars, or even higher.

  1. Reception band

Musical entertainment is a mainstay of most wedding receptions. The decision to hire a band or a DJ for the reception can have sizable effects on the overall cost of a wedding. Hiring a band for a wedding reception can be one of the most expensive parts of the entire party. The average cost of having a band play at a wedding is $3,263. A DJ, by comparison, is typically more than $2,200 cheaper than a live band. Hiring one could be an efficient way to reduce the total cost of a wedding.

  1. Photographer

Having photos taken is expensive — researchers found that the cost was $2,117 on average per wedding. That’s not even including the cost of a videographer, which can cost an average of $1,588. Together, these services make up a combined $3,705.

  1. Florist and decor

Flowers and other decorations can quickly add up in terms of cost. The average cost of a florist is $1,764 per wedding. This figure can grow as the number of flowers needed for an event increases. Make sure to ask your venue what comes free so you don’t end up unknowingly doubling up on purchases or paying for a more expensive version of what they have.

Least expensive wedding features

The following features commonly found at weddings are much cheaper than the must-haves mentioned above. Depending on the scope and elaborateness of these more affordable features, they could still carry a high cost for some — or, on the other hand, couples could reduce their expenses on these less-expensive parts of a wedding by getting creative.

  1. Favors

The least expensive part of a wedding for most people are the favors that guests receive. On average, the cost of wedding favors was $353 in 2020. Depending on the type and amount of favors offered, the cost of favors could increase or decrease relative to the national average. For this reason, the couple could save money by avoiding expensive party favors.

  1. Wedding cake

A wedding cake costs $441, or $6.68 per piece, based on the average number of guests that attended weddings in 2020. There are multiple ways to save money on this expense, however. For instance, the married couple could decide to serve smaller cuts of cake. Alternatively, they could order a smaller version of a wedding cake for presentation and then have a few sheet cakes in the kitchen to feed the mass of people.

  1. Invitations

Invitations cost $7.88 each on average (assuming most people come as couples), though much fancier invitations can command higher costs for every person. Couples looking to save could reduce their costs by making DIY cards or even going with 100% electronic invitations that are sent out as emails.

  1. Transportation

The average cost of securing transportation for a wedding is $706 per event. This expense may include a limo or hired car to take the newly married couple (and in some cases the bridal party) to the reception venue. Limiting the size of a hired vehicle or, if the reception is close to the ceremony, walking from one point to the other could significantly lower or eliminate the cost of transportation.

  1. Reception DJ

Compared to the expense of hiring an in-person band for the reception, a DJ has a much more affordable cost. The cost of hiring a DJ amounts to $1,058 on average. This is $2,205 cheaper than getting a band to play the reception.

What about wedding insurance?

Wedding insurance can add hundreds of dollars to the overall bill for a wedding. The cost of wedding insurance depends on the amount of protections the newlyweds to-be want to add.

Wedding insurance refers to two different types of coverage: one version guards against deposits and wedding-day property, like special clothes and jewelry. The other is a type of liability coverage.

The in-person restrictions and uncertainty that COVID-19 caused in the wedding insurance industry resulted in consumers being unable to purchase coverage from some of the most well-known providers. As 2021 shapes up to be more normal than 2020, it’s safe to assume that wedding insurance companies will see more couples purchasing coverage. However, rates could be more expensive as companies look to make up their lost revenue.

How wedding costs have changed over time

Aside from 2020, there have been more than 2 million marriages every year since 2000. Due to the coronavirus pandemic, the number of marriages fell to 1.2 million — a year-over-year drop of 37%. Despite this drop, a per-wedding cost that continued to exceed $20,000 coupled with high numbers of people who still went forward with their planned weddings meant people still spent more than $25 billion on weddings.

Experts estimate that Americans spent a yearly average of $50 billion on weddings from 2015 to 2020.

Year

Marriages

Money spent

2015

2,221,579

$59,094,001,400

2016

2,251,411

$60,112,673,700

2017

2,236,496

$57,701,596,800

2018

2,132,853

$52,681,469,100

2019

2,015,603

$49,785,394,100

2020

1,268,077

$25,741,963,100

Given the unprecedented effects that 2020 had on the wedding industry — even though earnings were high — it’s likely that the cost of weddings in the rest of 2021 will resemble the more conventional cost of weddings in 2019. The average cost of a wedding that year was 18% higher than it was in 2020.

The Credit Fighters is a Texas-based company. They have years of experience helping consumers understand and work to improve their credit and offer a 120-day money back warranty to every customer. You can call 888.624.3426 to schedule a free credit consultation with a Credit Fighter counselor today.