How much credit card debt does the average American have?

Depending on your sources, Americans are either in a lot of credit card debt trouble, or not much at all. 

Bankrate.com lists 25 fascinating facts about personal debt, including:

Average per household debt in the U.S., not counting mortgage debt, is about $14,500 -- especially noteworthy because before the 1930s, most middle and working class people had no major debts. Banks would not lend to them; they rented their homes and if they did own a house, it was paid for as it was being built.

Some 40 percent of American families annually spend more than they earn.

Average credit card debt among all American households is $8,400.

Average card debt among people who have at least one card is $9,205 -- triple what it was in 1990.

But then, if you look at another source like MSN Money Central's The Truth About Credit Card Debt, you hear something completely different:

Only 29% of households owe $1,000 or more on their cards.

23.8% of American households have no credit cards at all -- no bank cards, no retail cards, nothing.

Another 31.2% of the households the Fed surveyed paid off their most recent credit card bills in full.

So who do we believe?  Are these facts even mutually exclusive?  It's possible that 60% of people have their debt affairs in order, and 40% are in various states of debt trouble, I suppose.  It's an interesting case of using numbers to tell different stories. 

In any case, it looks like all sides agree that average debt is rising, and that a certain percentage of people have incredible debt as it is.  But is that percentage 1% of all Americans, 10%, or more?  Are they the exception or the rule?  What's your experience?

Comments

[Todd Schoonover]

That's the great thing about statistics, anyone can spin them to tell the story they want to tell. Bankrate.com has ties to banking which makes their money from consumer debt, but at the same time faces growing losses as people can't pay. What is their motivation in talking about debt? Meanwhile, MSN has ties to Microsoft and you all know what Microsoft is after, world domination. Are they more inclined to want to help people out of debt, or convince people to buy their product regardless of cost?

Like the X-Files used to say, the truth is out there. That being said, I actually concur with the MSN article because it cites sources unlike the bankrate.com article. It shows exactly how the commonly stated statistics are used fallaciously to support political interests.

Wow. Who would've thought something truthful would come out of MSN?

[Saurabh Malakar]

I think the problem is living cost of the people are increasing day by day thats why this credit card debt problem is there...anyhow it is a great statistic shown by McLeod..Thanks and Cheers!

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Sourav

Credit Card Debt