Jaw-Dropping Stats About the State of Debt in America
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Loading... - Jerome Makris
- 22 May 2023
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Most Americans carry some amount of credit card debt. Recent data from a GOBankingRates survey reveals that 30% of Americans have a credit card debt ranging from $1,001 to $5,000. Additionally, 15% of Americans owe $5,001 or more on their credit cards, while approximately 6% have accumulated over $10,000 in credit card debt. While this 6% may seem like a small percentage, it translates to a staggering 14 million Americans burdened with credit card debt exceeding $10,000.
Here are some eye-opening statistics shedding light on the current state of credit card debt in America:
33% of Americans anticipate needing more than two years to fully repay their credit card debt.
While 39% believe they can eliminate all their credit card debt within the next year, a significant portion estimates that it will take at least two years. Among those, 24% believe it will take a couple of years, 5% foresee paying off their debt within five years, and 3% believe they will never be able to fully settle their debt.
15% of Americans Have Been in Credit Card Debt for 15 Years
A separate survey conducted by Inside 1031 found that 55% of individuals consistently carry a credit card balance from one month to another. Moreover, 40% of respondents haven't been debt-free since before 2018, and a striking 15% have been struggling with credit card debt since before 2006.
Nearly half of Americans, 49% to be precise, rely on credit cards to cover essential living expenses.
This dependence on credit cards is particularly prevalent among younger generations, with 61% of Gen Zers and 53% of millennials resorting to credit cards for their daily expenses. In contrast, only 26% of boomers rely on credit cards to meet essential financial obligations.
The Inside 1031 survey indicates that 45% of Americans have accumulated more credit card debt since the onset of the pandemic in March 2020. Notably, individuals carrying a credit card balance from month to month are more than twice as likely to report an increase in their debt compared to pre-pandemic levels.
Most Americans Have Missed at Least One Credit Card Payment
According to the survey, a significant 57% of Americans have missed at least one credit card payment. The most common reason cited for missed payments is simply forgetting (37%), followed closely by using funds for food and groceries (32%).
Disturbingly, 44% of Americans stated that they would turn to their credit cards to cover a $2,000 emergency.
Thirteen percent of the population has no emergency savings at all, while 37% have less than $1,000 set aside for unexpected expenses. Given these circumstances, it is not surprising that a significant portion of Americans would resort to credit cards in times of financial crises.
