Which state has the highest average credit card debt?

Alaska has the highest average credit card debt at $7,961, followed by Connecticut ($7,654) and New Jersey ($7,579). Mississippi has the lowest average at $4,784. States with higher costs of living tend to have higher credit card balances.

How has credit card debt changed since COVID?

Total U.S. credit card debt dropped from $927 billion (Q4 2019) to $770 billion (Q1 2021) during the pandemic, driven by stimulus payments and reduced spending. It then surged 57% to $1.21 trillion by Q4 2024, driven by inflation, record-high interest rates, and the depletion of pandemic-era savings.

FAQ -- Credit Card Debt Statistics and Bankruptcy

Q: How much credit card debt is too much?

The dollar amount matters less than the ratio of debt to income. Financial experts generally consider credit card debt a crisis when it exceeds 10% of gross annual income or when minimum payments exceed 15% of take-home pay. At the average APR of 22.76%, even moderate balances can become unmanageable on lower incomes.

Q: Which age group has the most credit card debt?

Gen X (ages 44-59) carries the highest average credit card debt at approximately $9,123 per person. Baby Boomers average $6,642, Millennials average $6,521, the Silent Generation averages $3,316, and Gen Z averages $3,262.

Q: Can credit card debt be discharged in bankruptcy?

Yes. Credit card debt is classified as general unsecured debt and is almost always fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy. Narrow exceptions exist for luxury purchases over $800 within 90 days of filing, cash advances over $1,100 within 70 days, and debt incurred through fraud.

Q: Is there a minimum amount of debt to file bankruptcy?

No. There is no minimum debt requirement to file bankruptcy. If your credit card debt is unmanageable given your income and expenses, you can file regardless of the amount. What matters is whether you can realistically repay the debt within a reasonable time while meeting basic needs.

Q: What is the average credit card interest rate?

The average credit card APR is 22.76% as of 2024, according to the Federal Reserve. This is the highest average rate on record, up from 16.3% in early 2022 before the Federal Reserve began raising interest rates. Subprime borrowers often face rates of 25-30%.

Q: What percentage of Americans have credit card debt?

Approximately 46% of credit cardholders carry a balance from month to month, according to the Federal Reserve. That represents roughly 166 million Americans. The other 54% of cardholders pay their balance in full each month and incur no interest charges.

About Credit Card Debt Statistics

What is the average credit card debt in the United States?

As of 2024, the average credit card balance per cardholder is $6,501 (TransUnion, Q3 2024). The average household credit card debt is approximately $10,479 (NerdWallet estimate). Total U.S. credit card debt is $1.21 trillion (NY Fed, Q4 2024).

However, "average" is misleading because it is pulled up by high-balance accounts. The median balance (where half are above, half below) is closer to $3,000-$4,000. See our full national overview.

How much total credit card debt do Americans have?

Americans collectively hold approximately $1.21 trillion in credit card debt as of Q4 2024 (Federal Reserve Bank of New York). This is a record high, up from $770 billion in Q1 2021 (the pandemic-era low) and $927 billion pre-pandemic.

What is the average credit card interest rate?

The average credit card APR is 22.76% as of 2024 (Federal Reserve G.19 Statistical Release). This is the highest average rate on record. Before the Fed rate hikes in 2022, the average was approximately 16.3%. Subprime borrowers typically face rates of 25-30%.

What percentage of Americans carry credit card debt?

Approximately 46% of credit cardholders carry a balance from month to month (Federal Reserve). That represents roughly 166 million Americans. The other 54% pay their balance in full each month.

Which state has the most credit card debt?

Alaska has the highest average credit card debt at $7,961, followed by Connecticut ($7,654) and New Jersey ($7,579). Mississippi has the lowest at $4,784. See the full state-by-state ranking.

Which age group has the most credit card debt?

Gen X (ages 44-59) carries the highest average balance at $9,123. This reflects peak earning and spending years combined with mortgage payments, children's education costs, and retirement savings gaps. See the full breakdown by age.

About Credit Card Debt and Bankruptcy

Can credit card debt be discharged in bankruptcy?

Yes. Credit card debt is classified as general unsecured debt and is almost always fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy. Narrow exceptions exist under Section 523(a)(2) for luxury purchases over $800 within 90 days of filing, cash advances over $1,100 within 70 days, and debt incurred through fraud.

Is there a minimum amount of debt to file bankruptcy?

No. There is no minimum debt requirement. If $3,000 in credit card debt is unmanageable given your income, you can file. What matters is whether you can realistically repay the debt within a reasonable time while meeting basic needs.

How much credit card debt is "too much"?

The dollar amount matters less than the ratio to income. Credit card debt is generally considered a crisis when it exceeds 10% of gross annual income or when minimum payments exceed 15% of take-home pay. See our detailed analysis of financial thresholds.

How long does it take to pay off the average credit card balance?

At minimum payments only, the average balance of $6,501 at 22.76% APR would take approximately 18 years to pay off and cost $9,200+ in interest. See The Minimum Payment Trap for detailed calculations at various balances.

Will I lose my house or car if I file bankruptcy for credit card debt?

In most cases, no. State and federal exemptions protect your home (up to specified equity limits), your car, retirement accounts, and personal property. Most Chapter 7 filers are "no-asset" cases, meaning they keep everything. Your automatic stay also stops creditor actions immediately upon filing.

How does credit card debt compare to other types of debt in bankruptcy?

Credit card debt is the easiest type of debt to discharge in bankruptcy. Unlike student loans (which require an adversary proceeding to discharge), tax debts (which have complex rules), or secured debts (which are tied to collateral), credit card debt is general unsecured debt with virtually no barriers to discharge.

About This Site

Where does the data come from?

All statistics on this site are sourced from publicly available government and industry data:

Federal Reserve Bank of New York: Quarterly Report on Household Debt and Credit
Federal Reserve Board of Governors: G.19 Consumer Credit Statistical Release
TransUnion: Credit Industry Insights Reports
Experian: State of Credit Report
NerdWallet: American Household Credit Card Debt Study
U.S. Census Bureau: Survey of Consumer Finances

Is this site legal advice?

No. This site provides general educational information only. It does not constitute legal advice and no attorney-client relationship is created. If you are considering bankruptcy, consult a licensed bankruptcy attorney in your state.

Who runs this site?

This site is part of the Open Bankruptcy Project, a 501(c)(3) nonprofit (determination pending). The project provides free, open-source bankruptcy information and tools. All sites in the network are maintained by volunteers and funded through Ko-fi donations.