New research reveals the average indebted household owes $15,355 in credit card debt alone. Credit card debt costs consumers an average of $2,630 per year in interest.
According to NerdWallet’s Annual American Household Credit Card Debt Study, the total amount of debt owed by U.S. consumers has reached $11.91 trillion or $129,579 per the average indebted household.
The study found Americans owe $712 billion on credit cards.
Mortgage owed per the average indebted household is $166,892 or a total of $8120 billion.
Auto loans owed per the average indebted household is $26,530 or a total of $1030 billion.
Student loans owed per the average indebted household is $47,712 or a total of $1210 billion.
Key findings include:
• The cost of living is outpacing income growth. While median household income has grown 26 percent since 2003, household expenses have outpaced it significantly ” with medical costs growing by 51 percent and food and beverage prices increasing by 37 percent in that same span.
• Interest payments add up. The average household already is paying a total of $6,658 in interest per year, which means that 9 percent of the average household income ($75,591) is being spent on interest alone.
• Credit card debt is particularly costly. The average American household with credit card debt could spend up to 44 years paying it down if only making the minimum payments each month.
For data, background and forecasts on Consumer Credit: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).