The total outstanding U.S. consumer debt balance grew $800 billion to a record high of $14.88 trillion, according to Experian data, an increase of 6%—the highest annual growth recorded in over a decade. Since 2010, consumer debt has increased a whopping 31%, or $3.56 trillion—inching up at an average of 2% annually.

Which generation has the most credit card debt?

Generation X
Members of Generation X have the highest average credit card debt at $7,155, followed by baby boomers and millennials, according to credit bureau Experian’s latest consumer findings.

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

On average, Americans carry $6,194 in credit card debt, according to the 2019 Experian Consumer Credit Review. And Alaskans have the highest credit card balance, on average $8,026.

Why does credit card debt grow so quickly?

Interest is what credit card companies charge you for the privilege of borrowing money. So if you don’t pay off your balance in full the following month, you’ll end up paying interest on your interest. This is how credit card balances can grow rapidly and sometimes get out of hand.

What does it mean to have heavy credit card debt?

The concept of heavy credit card debt is open to varying interpretations. People who have greater access to money can typically afford to carry more total debt than people living from paycheck to paycheck. Your financial goals and your income usually dictate whether you are carrying too much credit card debt.

Can a person have too much credit card debt?

People who have greater access to money can typically afford to carry more total debt than people living from paycheck to paycheck. Your financial goals and your income usually dictate whether you are carrying too much credit card debt.

Is it better to spread out my credit card debt?

Is it better to spread out my credit card debt so that each of my cards is at around 30% of my limit or is it better to consolidate it all to just one or two cards even if these end up being at close to 80-90% of the limit? Assume the interest rates in question are the same.

What was the increase in credit card debt?

The average American credit card debt grew by 52% between 2000 and 2019, but dropped significantly in 2020. The COVID-19 outbreak made people much more cautious with their credit card funds in 2020.