Get All Access for $5/mo

Credit Card Debt Is Rising — Here's How Much the Average American Owes Average credit card debt is up 6% from last year. How does your debt compare to the rest of the country?

By Sherin Shibu Edited by Melissa Malamut

Key Takeaways

  • TransUnion’s second-quarter Credit Industry Insights Report released Thursday shows the average American has 6% more credit card debt than they did a year ago.
  • Average credit card debt is now $6,329 compared to $5,947 last year.
  • The Federal Reserve Bank of New York also released a survey earlier this week showing that U.S. credit card debt now totals $1.14 trillion.

Credit card debt in the U.S. hit a record high in Q2, and Americans are paying the price — in interest.

The Federal Reserve Bank of New York reported Tuesday that credit card debt skyrocketed to $1.14 trillion as of Q2 2024. That's a $27 billion increase from the previous quarter and a $111 billion jump from the same time last year. The report was representative of the nation, based on a national sample of data drawn from the New York Fed's Consumer Credit Panel.

Related: Robinhood Is Offering a Credit Card for the First Time — and It's Available in 10-Karat Gold

Meanwhile, TransUnion's second-quarter Credit Industry Insights Report released Thursday shows that the average American now has an average of $6,204 in credit card debt, or 6% more than last year's average of $5,947.

TransUnion reported 545 million credit cards in use in the U.S. in Q2 2024.

Paul Siegfried, senior vice president and credit card business leader at TransUnion, says there's a difference between how higher-risk and lower-risk borrowers use their credit cards.

"Higher-risk [borrowers] seem to be experiencing more significant inflationary pressures and as such, relying on their cards more, evident in increasing balances and higher utilization," he stated.

Related: There Are New Rules for 'Buy Now, Pay Later' Programs — Here's What to Know

At the same time, TransUnion found that credit card originations, or approval for new credit cards, mortgages, and loans, was down 7% year-over-year.

"Originations will likely continue to decline for mid-tier and worse consumers as issuers look to less risky borrowers," Siegfried said.

According to a Forbes Advisor's report, the average credit card annual percentage rate (APR) is around 27.62% this week.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

Most Problems Fall Into 1 of 3 Layers — Here's How to Effectively Approach Each One

In entrepreneurship, not all problems are created equal. I've found that there are three layers of problems, and each one requires its own type of solution — here's what they are and how to approach each one.

Living

Unleash Unshakable Confidence in 7 Days: The Neuroscience-Backed Blueprint

In the cut-throat business world, self-doubt can be the difference between success and failure, costing you everything.

Side Hustle

She Started a T-Shirt Side Hustle as a Recent Grad Working at 'People' Magazine. It Led to a DM From Levi's and $400 Million.

When Michelle Wahler, co-founder and former CEO of Beyond Yoga, moved to California, she went "full steam ahead" on a new venture.