How Does Your Credit Card Debt Stack up Against Other People Your Age?
As of September 2018, the average amount of debt per person is $5,700. The average balance per household is $9,333. The total amount of revolving debt in the United States is $1.03 trillion. 41% of the people in the U.S. have some level of credit card debt. Have you ever wondered how your level of credit card debt stacks up against other people’s in your age group?
0 to 35 – Average Credit Card Debt = $5,808
This group is among the lowest in terms of debt balance. They are also among the least likely to have a credit card. People in this age group typically have a lower “operating budget” so they cannot afford to manage much debt. Many Millennials are not opening lines of credit which is hurting their credit score and reducing their chance of getting a card.
35 to 44 – Average Credit Card Debt = $8,235
This is where credit card users start to pick up steam. By this age, many people have had open lines of credit for more than 5 years. They are typically in a higher income bracket than the previous group which allows them to get cards with greater spending limits and increases their ability to pay the bill.
45 to 64 – Average Credit Card Debt = $8,627
The “baby boomers” average the largest amount of credit card debt per person. However, this age group also controls the largest amount of disposable income in the United States. Additionally, they do not have as much student loan debt.
65 and over – Average Credit Card Debt = $6,326
This group is among the least likely to have a credit card. However, this trend is changing. Due to rising medical costs, the debt burden on this age group is increasing. Some individuals in this group may have trouble getting a credit card even if they want one because, in the event of death, the credit card company could be stuck with the debt. This fact often makes companies more hesitant to issue a card.
Credit card debt affects just about everyone over the age of 18. Unforeseen events can lead to credit card overuse and things may get out of control. If you find yourself in this position and creditors are calling you day and night or if you are ready to start paying down the debt and need guidance, contact Elias Dsouza at Dsouza and Strachan Lawgroup Group. He has the skill and experience to get you back on track.
Data used in the post is from valuepenguine.com.