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Yahoo Finance Plus Jaw-Dropping Stats About the State of Debt in America
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.
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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.
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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.
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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.
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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.
This article originally appeared on GOBankingRates.com: Jaw-Dropping Stats About the State of Debt in America
