What does the average person have in credit card debt?

The average credit card debt per person in the U.S. hovers around $6,500 to $7,300, with figures varying slightly by source and reporting period, generally reflecting late 2024 or 2025 data, with Gen X carrying the most debt and younger generations less. For example, recent reports show averages like $6,523 (TransUnion/Forbes), $6,730 (Experian), and $7,321 (LendingTree for those with balances) as of late 2025, with Gen X averaging over $8,000 and Millennials around $5,600-$6,500.

How much does the average person have in credit card debt?

The average American carries around $6,500 to $6,700 in credit card debt, with figures varying slightly by source and reporting period (late 2025/early 2026 data shows averages like $6,523, $6,580, $6,730). This debt often comes from covering essentials like car repairs, groceries, and medical bills, not just luxuries, and for many, it's a way to manage daily expenses. 

Is 20,000 credit card debt a lot?

If you're carrying a significant balance, like $20,000 in credit card debt, a rate like that could have even more of a detrimental impact on your finances. The longer the balance goes unpaid, the more the interest charges compound, turning what could have been a manageable debt into a hefty financial burden.

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

What is the credit card limit for $70,000 salary?

With a $70,000 salary, you could expect initial credit limits ranging from around $14,000 to over $20,000, potentially reaching higher with excellent credit, but the actual limit depends heavily on your credit score, existing debt (Debt-to-Income ratio or DTI), and the card issuer's policies, as lenders focus more on your ability to repay than just income. 

30 Minutes of INSANE Credit Card DEBT in 2025

Should a $20000 credit card have a $6000 balance?

How Much You Should Spend With a $20,000 Credit Limit. Spending between $200 and $2,000 per month is best for your credit score. You should avoid having a balance above $6,000 when your monthly statement gets generated. Even if you spend $0, your credit score will still improve just by having the account open.

What credit score do you need for a $400,000 house?

Credit Score

When applying for a $400,000 home, lenders evaluate your credit scores to determine eligibility and the rates you'll receive: 740+: Best rates and terms. 700-739: Slightly higher rates. 660-699: Higher rates, may require larger down payment.

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

What's the most credit card debt ever?

The most credit card debt ever recorded in the U.S. is a staggering $1.23 trillion, a new all-time high reached in the third quarter of 2025, driven by persistent inflation, high interest rates (averaging nearly 22%), and resilient consumer spending, causing more Americans to struggle with payments. 

What is a good credit score range?

A good credit score generally falls in the 670-739 range for FICO scores, indicating responsible credit use and good chances for loan approval with decent rates, while scores above 740 (Very Good) to 800+ (Exceptional) unlock the best loan terms and interest rates, with scores below 600 often making credit harder to get. Different models (FICO, VantageScore) use slightly different bands, but the overall trend is the same: higher is better, with 700+ being a solid target.
 

What is the 777 rule with debt collectors?

The "777 Rule" (or 7-in-7 Rule) for debt collectors, established by the Consumer Financial Protection Bureau's Regulation F, limits phone calls to no more than seven times in a seven-day period for each specific debt, and requires a seven-day waiting period after a live phone conversation about that debt before calling again. This rule prevents harassment by setting clear caps on call frequency, with missed calls, voicemails, and attempted calls counting toward the limit, while also granting consumers the right to stop calls at work or via digital means. 

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have at least two active credit accounts, open for at least two years, with at least two years of on-time payments, sometimes also requiring a minimum credit limit (like $2,000) for each. It shows lenders you can consistently manage multiple debts, building confidence in your financial responsibility beyond just a high credit score, and helps you qualify for larger loans. 

What is considered serious credit card debt?

If you're spending more than 36% of your income on all debt obligations (including your mortgage, car loans and credit cards), that's generally considered high. For credit card debt alone, any DTI ratio above 10% of your monthly income should raise concerns.

What state has the worst credit card debt?

Alaska currently tops the list, with the average Alaskan consumer carrying $8,077 in credit-card debt as of Q3 2024. Alaska has historically ranked high in revolving-credit balances, but the latest increase reinforces that it remains the most indebted state on a per-consumer basis.

Which generation has the most debt?

Generation X (Gen X) generally holds the most debt on average, particularly in mortgages, auto loans, and credit cards, often due to being the "sandwich generation" supporting both children and parents, but Millennials have higher total consumer debt due to significant student loans, while Gen Z faces increasing debt loads, especially for education and housing. 

How many people pay off credit cards monthly?

About half of U.S. credit card users pay their balances in full monthly, while the other half carry debt, though estimates vary slightly, with some research showing around 45-49% paying in full and others indicating a slight majority (over 50%) revolve debt, with higher earners more likely to pay in full than lower earners. This behavior tends to be consistent over time, with users either regularly paying off cards or revolving balances. 

What is the credit card limit for $70,000 salary?

The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.

How much is considered high credit card debt?

💡Quick answer. How much credit card debt is too much? A good rule of thumb is to keep your credit utilization below 30% and your debt-to-income (DTI) ratio under 36%. Once your DTI climbs above 43%, lenders may view you as a higher risk.

What is a good strategy to pay off debt?

Focus on one debt at a time.

Start with the credit cards or loans with the highest interest rate and make the minimum payments on your other cards. Or, start with the debt you can pay off the quickest if you need the boost of satisfaction that comes from wiping a loan off your books.

Is being debt-free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages. 

What age group has the most debt?

The age group with the most total debt in the U.S. is typically Generation X (ages 40s-50s), driven by large mortgages, while Millennials (30s-40s) have high student debt and are accumulating credit card debt, and older groups like Baby Boomers carry substantial mortgage balances but are paying them down, showing debt shifts from education/vehicles to housing and retirement savings as people age.
 

What is the average retirement savings?

The average retirement savings for all U.S. families is around $334,000, but the median is much lower at $87,000, highlighting a large gap due to high earners skewing the average. Savings vary significantly by age, with younger generations having much less, and older age groups (like 65-74) showing higher figures, such as a median of $200,000, though many Americans still lack sufficient savings.
 

Is it true that after 7 years your credit is clear?

It's partially true: most negative items like late payments and collections fall off your credit report after about seven years, but the debt itself might still exist, and bankruptcies last longer (up to 10 years). The 7-year clock starts from the date of the first missed payment, not when it goes to collections, and older negative info must be removed by law, though the debt isn't always forgiven. 

How much of a house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house between $210,000 and $350,000, but your actual budget depends heavily on your credit score, existing debts, down payment, and current mortgage rates, with lenders often following the 28/36 rule (housing costs under 28% of gross income, total debt under 36%). A good starting point is keeping your total monthly housing payment (PITI) under $1,633, but a lower Debt-to-Income (DTI) ratio and larger down payment increase your buying power. 

What is the perfect credit score?

A perfect credit score is 850 on the FICO scale, the highest possible, signifying exceptional creditworthiness, though achieving it is rare (around 1-2% of people) and scores of 800+ (Exceptional) are considered near-perfect and get the best rates, with no significant difference in lender offers between an 850 and an 800+. It's built on perfect payment history, low utilization, and a long credit history, but requires consistent, responsible financial habits.