Jaw-Dropping Stats Regarding the State of Debt in America

The majority of Americans owe money on their credit cards. According to a recent poll conducted by GOBankingRates, 30 percent of Americans have credit card debt ranging between $1,000 and $5,000, 15 percent have credit card debt totaling $5,000 or more, and around 6 percent have credit card debt totaling more than $10,000.

Although 6 percent may seem like a small percentage, it translates into 14 million Americans having more than $10,000 in credit card debt, according to the poll data.

Even more startling statistics concerning the level of credit card debt in the United States are provided below.

In the United States, about one-quarter of people believe it will take them two years or more to pay off their credit card debt.

When asked if they expect to be able to pay off all of their credit card debt over the next six months, 59 percent of Americans say it would take at least two years.

The majority (13 percent) feel it will take a couple of years, 8% believe it will take five years, and 2% believe it would take forever to pay off their debt.

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Approximately 15% of the population of the United States has had credit card debt for more than 15 years.

In a second poll performed by Inside 1031, it was shown that 55 percent of individuals carry a credit card debt from one month to the next. 

According to the survey, forty percent of those surveyed had not been debt-free since before 2018 — and 15 percent have been in debt since 2006.

Nearly half of all Americans rely on credit cards to pay for necessities such as food and shelter.

According to the Inside 1031 poll results, 49 percent of Americans rely on credit cards to fund their critical living expenditures. 

Using credit cards for living expenditures is increasingly frequent among younger generations: 61 percent of Generation Zers and 53 percent of millennials do so for living expenses. However, just 26 percent of baby boomers use credit cards to pay for critical needs, compared to the general population.

Approximately 45 percent of Americans have increased their credit card debt due to the pandemic.

According to the poll results, roughly half of all Americans have increased their credit card debt since March 2020. Individuals who carry a credit card load from month to month are more than twice as likely as those who did not have debt before the epidemic to report having greater debt today.

The majority of people in the United States have missed at least one credit card payment.

The poll discovered that 57 percent of Americans had missed at least one credit card payment in their lives. Not paying attention was the most prevalent cause for missing payments (37 percent), followed by having to pay for meals and groceries (24 percent) (32 percent ).

If they were faced with a $2,000 emergency, 43% of Americans would use credit cards to pay for it.

Thirteen percent of Americans have no emergency savings, and 37 percent have less than $1,000 in emergency savings, so it’s not surprising that nearly half of Americans said they would use a credit card to cover a $2,000 emergency. Nearly half of Americans said they would use a credit card to cover a $2,000 emergency.