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Reviewed by Steve Rogers
Greater than 165 million shoppers within the US alone have a bank card account. The full bank card debt reached practically $1 trillion in early 2023, an all-time excessive. The typical bank card rate of interest additionally reached an all-time excessive of 20.09%[1].
We’ve compiled the newest stats on bank card debt from authorities and client credit score reporting companies that will help you higher perceive the present state of the credit score lending trade and its prospects.
Key Findings
- Individuals owe a complete of $975.59 billion in bank card debt.
- The full variety of lively bank cards reached 532.2 million in Q1 2023.
- The typical American has $5,733 in bank card debt.
- Iowans have the bottom common bank card stability of $4,808 whereas Alaskans have the best – $7,338.
- 82.1 million new bank cards have been issued in 2022 – an-all time excessive.
- The bank card delinquency charge (90+ days) reached 2.26% in Q1 2023.
US Credit score Card Debt by 12 months
Bank card debt within the US reached $975.59 billion within the first quarter of 2023, a 15.19% year-over-year improve[2].
Pre-pandemic (This fall 2019), Individuals owed $845.36 billion in bank card debt.
How A lot Credit score Card Debt Does the Common American Have?
The typical bank card debt per client within the US was $5,733 in Q1 2023, 1.24% down from the earlier quarter (This fall 2022)[3].
Experian information suggests a barely increased common credit score stability amongst shoppers within the US – $5,910 (in Q3 2022) and $5,221 (in Q3 2021)[4].
Common Credit score Card Debt by State
Iowa had the bottom common bank card stability of $4,808 in Q3 2022, whereas common bank card balances reached $7,338 in Alaska. All states reported a year-over-year improve in common bank card balances[4].
YoY change in bank card debt by state
| State | Q3 2022 | Q3 2021 |
|---|---|---|
| Alabama | $5,364 | $4,875 |
| Alaska | $7,338 | $6,617 |
| Arizona | $5,755 | $5,061 |
| Arkansas | $5,183 | $4,670 |
| California | $6,030 | $5,154 |
| Colorado | $6,274 | $5,587 |
| Connecticut | $6,825 | $6,052 |
| Delaware | $6,015 | $5,357 |
| Florida | $6,408 | $5,620 |
| Georgia | $6,265 | $5,604 |
| Hawaii | $6,343 | $5,525 |
| Idaho | $5,181 | $4,539 |
| Illinois | $6,011 | $5,315 |
| Indiana | $5,017 | $4,528 |
| Iowa | $4,811 | $4,285 |
| Kansas | $5,532 | $5,029 |
| Kentucky | $4,894 | $4,408 |
| Louisiana | $5,577 | $5,054 |
| Maine | $5,078 | $4,538 |
| Maryland | $6,668 | $5,911 |
| Massachusetts | $6,046 | $5,232 |
| Michigan | $5,265 | $4,661 |
| Minnesota | $5,425 | $4,754 |
| Mississippi | $4,912 | $4,449 |
| Missouri | $5,417 | $4,865 |
| Montana | $5,385 | $4,778 |
| Nebraska | $5,312 | $4,789 |
| Nevada | $6,176 | $5,373 |
| New Hampshire | $5,944 | $5,251 |
| New Jersey | $6,819 | $5,995 |
| New Mexico | $5,350 | $4,821 |
| New York | $6,269 | $5,473 |
| North Carolina | $5,658 | $5,101 |
| North Dakota | $5,408 | $4,874 |
| Ohio | $5,320 | $4,808 |
| Oklahoma | $5,654 | $5,155 |
| Oregon | $5,316 | $4,630 |
| Pennsylvania | $5,640 | $5,026 |
| Rhode Island | $5,867 | $5,153 |
| South Carolina | $5,714 | $5,176 |
| South Dakota | $5,071 | $4,591 |
| Tennessee | $5,432 | $4,891 |
| Texas | $6,542 | $5,820 |
| Utah | $5,535 | $4,831 |
| Vermont | $5,159 | $4,595 |
| Virginia | $6,477 | $5,864 |
| Washington | $6,043 | $5,231 |
| Washington, D.C. | $6,904 | $5,949 |
| West Virginia | $5,005 | $4,574 |
| Wisconsin | $4,808 | $4,329 |
| Wyoming | $5,745 | $5,159 |
Common Credit score Card Debt by Age
Debtors who’re 42-57 years outdated (Era X) had the best common bank card debt: $8,134 (in Q3 2022, 15% up in comparison with Q3 2021)[4].
Regardless of Era Z usually owing much less per borrower ($2,854), youthful individuals below 25 years outdated noticed the largest year-over-year improve in common bank card debt (+25.1%) than some other age group.
YoY change in bank card debt by age
| Era (age group) | Q3 2022 (YoY change) | Q3 2021 |
|---|---|---|
| Era Z (18-25 years outdated) | $2,854 (+25.1%) | $2,282 |
| Millennials (26-41 years outdated) | $5,649 (+23.5%) | $4,576 |
| Era X (42-57 years outdated) | $8,134 (+15%) | $7,070 |
| Child Boomers (58-76 years outdated) | $6,245 (+7.6%) | $5,804 |
| Silent Era (77 years outdated and over) | $3,316 (+4.4%) | $3,177 |
Common Credit score Utilization
The typical credit score utilization charge within the US reached 21.5% within the first quarter of 2023, 1.5% up in comparison with the identical quarter in 2022[5].
Credit score Card Originations
Bank card originations (new playing cards issued) within the US reached 82.1 million (an-all time excessive) in 2022, exhibiting an 11.7% improve over the previous 12 months[6].
In 2023, there have been reported 6.2 million bank card originations from January to March (7.3% year-over-year development).
Credit score Card Originations by Credit score Rating
Based on an evaluation of bank card originations within the US, the proportion of subprime shoppers (with credit score scores between 300 and 600) within the complete variety of credit score originations has declined from 22.8% in This fall 2021 to 19.3% in This fall 2022 as lenders decrease threat publicity[5].
Prime shoppers (661-720) held the biggest share (22.3%) as of This fall 2022 in comparison with different threat tiers.
Credit score Card Balances by Era
Era X owes the biggest share of bank card balances (33.9%), adopted by Millennials (28.6%) and Child Boomers (27.9%)[5].
Credit score Card Delinquency Charges
The delinquency charge (30+ days late) on bank card balances within the US reached 4.17% within the first quarter of 2023, a 0.88 share level improve since Q1 2022. That’s nearly double the 10-year common of two.28%[5].
Severe bank card delinquencies (90+ days late) rose to 2.26% in Q1 2023 from 1.61% in Q1 2022.
Historic Credit score Card Curiosity Charges
The typical rate of interest on bank cards reached 20.09% in February 2023, a document excessive. Rising charges and rising balances point out further stress for shoppers and windfall income for card issuers[7].
The content material on finmasters.com is for academic and informational functions solely and shouldn’t be construed as skilled monetary recommendation. Finmasters will not be a monetary establishment and doesn’t present any monetary services or products. We try to offer up-to-date data however make no warranties concerning the accuracy of our data.