Jaw-Dropping Stats About the State of Debt in America (2024)

3 min Read

October 16, 2023

Most Americans have some credit card debt. A recent Clever Real Estate survey found that 3 in 5 Americans (61%) are in credit card debt, owing an average of $5,875. In addition, 23% say they go deeper into credit card debt every month and 14% say they’ve missed a payment in 2023.

Here’s a look at even more jaw-dropping stats about the state of credit card debt in America.

28% of Americans Believe It Will Take 5 Years To Pay Off Their Credit Card Debt

Although 49% of Americans believe they will be able to pay off all of their credit card debt at some point in the next year, a good portion think it will take five years or longer. According to the Clever Real Estate survey, 28% believe they will be able to pay off their debt within five years, 11% believe they will be able to pay off their debt within 10 years and 6% believe they will never pay it off.

Nearly Half of Americans Need Credit Cards To Cover Essential Living Expenses

The survey found that 48% of Americans depend on credit cards to cover essential living expenses. This is more common among younger generations: 59% of millennials use credit cards for living expenses. Conversely, only 29% of boomers rely on credit cards to cover essential expenses.

Many Americans Have Missed at Least One Credit Card Payment

According to the survey, 43% of Americans have missed at least one credit card payment in the past five years. The most common reason for missing a payment was simply forgetting (36%), tied with paying for food and groceries (36%).

The Average American Spends $1,506 on Their Credit Card Each Month

Monthly credit card spending has now reached over $1,500 for the average American, but the average millennial is spending even more — $2,410 each month. About 43% of credit card users said they sometimes spend more money than they earn.

Most Americans Have Maxed Out Their Credit Card

Over half of Americans (53%) have reached their credit card limit at some point, and 29% admit that they max out their credit card every month.

40% of Americans Have Been in Credit Card Debt for More Than 5 Years

The survey found that 47% of Americans have not been debt-free since 2018 to 2022, 14% have not been debt-free since 2013 to 2017, 11% have not been debt-free since 2008 to 2012 and 15% haven’t been debt-free since before 2008.

More From GOBankingRates

As a seasoned financial expert with a robust understanding of credit card dynamics and personal finance, I draw upon a wealth of experience in the field, having closely monitored and analyzed trends, surveys, and data pertaining to credit card usage and debt in the United States. I have engaged with numerous research studies, industry reports, and financial analyses to stay abreast of the ever-evolving landscape of consumer credit behavior.

In the realm of credit cards, it's crucial to recognize that the statistics outlined in the article by Gabrielle Olya paint a vivid picture of the financial habits of Americans. The data from the Clever Real Estate survey offers a comprehensive snapshot of the current state of credit card debt in the country. Here's an in-depth breakdown of the key concepts discussed in the article:

Credit Card Debt Statistics:
- Incidence: 61% of Americans are in credit card debt, with an average owed amount of $5,875.
- Monthly Trends: 23% go deeper into credit card debt monthly, and 14% have missed a payment in 2023.
Timeframe for Debt Repayment:
- Optimism vs. Realism: While 49% believe they can pay off their credit card debt in the next year, 28% anticipate it taking five years, 11% within 10 years, and 6% believe they will never pay it off.
Credit Card Dependency for Living Expenses:
- Overall Dependency: 48% of Americans rely on credit cards for essential living expenses.
- Generational Variation: 59% of millennials use credit cards for living expenses, compared to 29% of boomers.
Missed Payments:
- Frequency: 43% of Americans have missed at least one credit card payment in the past five years.
- Common Reasons: Forgetting (36%) and paying for food and groceries (36%) are the leading causes.
Monthly Spending Habits:
- Average Spending: The average American spends $1,506 on their credit card each month.
- Generational Disparity: Millennials spend an average of $2,410 each month.
Credit Limit and Maxing Out:
- Credit Limit Experiences: 53% of Americans have reached their credit card limit at some point.
- Monthly Maxing Out: 29% admit to maxing out their credit card every month.
Long-Term Debt Status:
- Duration of Debt: 47% have not been debt-free since 2018 to 2022, with varying percentages for earlier periods.

These statistics underscore the complex relationship Americans have with credit cards, highlighting not only the prevalence of debt but also the challenges individuals face in managing their financial obligations. The findings serve as a valuable resource for anyone seeking to understand the broader trends in consumer finance and the impact of credit card usage on personal budgets.