Average credit card debt by state graphic

[Jokester]

There will always be pop-up expenses and good to have credit card cushion 'if' needed. Wanting and needing are of course entirely different as things such as medical, dental, vehicle surprises are needs that can't always be factored into monthly bills. Also consider how many people would be unemployed if credit companies didn't exist at all!

 

[ctechbob]

I put as close to 100% of purchases I can on the card, most purchases right now I'm getting 3% cashback, while then getting 4% interest on the "cash" I'm not spending

Literally free money

Gotcha. You're not carrying a month-to-month balance. I read it as you were sticking 20k on there out of the gate and letting it ride for 18 months.

 

[fdcg27]

The average balance levels seem both modest and manageable.
These unsecured debt levels are lower than what I would have thought.
As long as you pay the balance off each month, plastic does offer a lot of benefits in rewards or even actual cash back.

 

[SupremePossum]

Gotcha. You're not carrying a month-to-month balance. I read it as you were sticking 20k on there out of the gate and letting it ride for 18 months.

Yep, it goes up and up and up, I just main the min balance each month

 

[GON]

What concerns me most is the new "average" credit card interest rate, over 23%. WOW WOW WOW.

Total consumer credit jumped by $19.24 billion in October to a record $5.11 trillion.

Over the last 4 years, have only been 2 months without an increase in consumer credit.

Revolving debt, which includes credit cards, soared by $15.72 billion, the most since June 2022, and hit an all-time high of $1.37 trillion.

Non-revolving credit rose by $3.52 billion, to $3.74 trillion, also a record.

Meanwhile, the average credit card interest rate jumped to an all-time high of 23.37% in Q3 2024.

 

[Sumboodie]

I found out last week credit is dinged for using cards.

I bought some equipment for my skid steer using a card. Paid in full when the bill came.

My bank sends a FICO report monthly and it showed like a 60pt drop. From low 800s to mid 700s.

Looked it up and it was showing something around a $12k balance on "revolving credit".

Problem is there's no balance on an card. Paid in full when the bill comes and I don't owe anything aside from a mortgage.

 

[hrv]

I am sure they got loaded again on Black Friday...

 

[Pablo]

I found out last week credit is dinged for using cards.

I bought some equipment for my skid steer using a card. Paid in full when the bill came.

My bank sends a FICO report monthly and it showed like a 60pt drop. From low 800s to mid 700s.

Looked it up and it was showing something around a $12k balance on "revolving credit".

Problem is there's no balance on an card. Paid in full when the bill comes and I don't owe anything aside from a mortgage.

Brush it off. Happens to me too. It's s weird repercussion for using their money. Unless somehow you need a loan and even then it won't make much difference if at all in the loan interest rate.

I thought about this, but decided - waste of effort - one COULD request increases in credit limits to somewhat mitigate the impact, if the credit score drop bugs you that much. This decreases the artificial % of credit used component impact.

 

[KrisZ]

Is that reoccurring debt people are trying to pay off or is it simple the end of the month statement? If it's the latter, many people pay it all off on the due date. I guess is still counts as debt for that month though.

Without knowing the details, it's a useless stat.

 

[tbm5690]

I found out last week credit is dinged for using cards.

I bought some equipment for my skid steer using a card. Paid in full when the bill came.

My bank sends a FICO report monthly and it showed like a 60pt drop. From low 800s to mid 700s.

Looked it up and it was showing something around a $12k balance on "revolving credit".

Problem is there's no balance on an card. Paid in full when the bill comes and I don't owe anything aside from a mortgage.

Yeah it's not using the cards, it's eating up percentage of available credit. I'm guessing $12k is a good chunk of your available credit. Doesn't really matter, but your score will rebound quickly.

 

[tbm5690]

I thought about this, but decided - waste of effort - one COULD request increases in credit limits to somewhat mitigate the impact, if the credit score drop bugs you that much. This decreases the artificial % of credit used component impact.

The effort is a click of a button on every card that I've ever requested an increase on. Same thing- I'll never need or use close to the limit but more available credit = lesser percentage of utilization with my "fixed" spending.

 

[Pablo]

The effort is a click of a button on every card that I've ever requested an increase on. Same thing- I'll never need or use close to the limit but more available credit = lesser percentage of utilization with my "fixed" spending.

Yeah, but who cares?

Young folks buying first house. That's about it.

Car? If you are financing you are not doing it right?
Next house? Maybe, but you should have some serious equity and the difference between 830 and 790, probably will not get a lower rate.
But, again if bugs you, yes, click away!

I am not bugged.

 

[Dave Hess]

Are Buy Now, Pay Later apps included in this debt figure ?

 

[CKN]

The effort is a click of a button on every card that I've ever requested an increase on. Same thing- I'll never need or use close to the limit but more available credit = lesser percentage of utilization with my "fixed" spending.

We have two cards with Citi Bank. We are always near the limits on the Costco card due to travel. Since we have also another Citi card-they will not increase the limit on the Costco card (numerous requests)-despite running it up near the limits and paying it off every month. Rebate on the Costco Citi Bank card will exceed $900.00 when the rebate arrives near the first of next year.

 

[SaberOne]

I was down into the $3k area on mine. Trying to get it paid off then we had a big vet bill come up so I'm at the state average again

I had a hefty vet bill myself, and it definitely stung. For the past three years, I’ve been aggressively working to pay off my accounts, and I’m finally starting to see progress. My goal now is to avoid taking on new credit and stick to just one or two cards with modest limits.

 

[GON]

Are Buy Now, Pay Later apps included in this debt figure ?

That is a great question and I suspect not, but don't know.

Months back I read an article on that emerging credit manner, and the article stated that industry was growing by leaps and bounds, and it was huge.

 

[Rand]

Sorta meh, article. I'll be putting 6k on next month.. doesnt mean I carry 6k.

Car? If you are financing you are not doing it right?

If you arent financing it you arent doing it right... (well at 1.99% anyway)

 

[Pablo]

If you arent financing it you arent doing it right... (well at 1.99% anyway)

$50000 car, 20% down

Drive off the lot. $40000 car. Well at least it's 100% financed!

10% down you are an idiot. 1.99% or whatever loan. Hey, I get a low interest rate for a house. Pretty sweet deal.

Pay cash. Either way, not really the point. The car loan will drive your credit score down more than being near the card credit limit - that seemed to be the primary concern.

 

[Sumboodie]

Yeah it's not using the cards, it's eating up percentage of available credit. I'm guessing $12k is a good chunk of your available credit. Doesn't really matter, but your score will rebound quickly.

Maybe 15% or so.

 

[LDB]

Sigh. I'm so far below average. Zero. Don't even have one actually. I did find this old dusty almost forgotten thing called money. Works every time.