2023 Credit Card Debt Study: Trends & Insights

Alina Comoreanu, WalletHub Senior ResearcherAug 25, 2023

U.S. consumers are back to bad habits when it comes to credit card debt. Consumers added an all-time record $179.4 billion in new credit card debt to their tab during 2022, capped off by an $84.9 billion increase during the fourth quarter alone. Now, consumers have started 2023 by paying down just $24 billion - the second-smallest first-quarter credit card debt paydown in the past decade.

You can find more credit card debt statistics and insights into the financial health of U.S. consumers below.

Credit card debt decreased by $24 billion during Q1 2023 – the second-smallest first-quarter credit card debt paydown in the past decade.

The decrease in credit card debt during Q1 2023 was 66% larger than the post-Great Recession average for the first quarter of a year.

Outstanding credit card debt decreased by roughly 2.78% during Q1, compared to the previous quarter.

Since the end of the Great Recession, consumer performance has regressed on a year-over-year basis in 6 of every 10 quarters.

Legend: <img width=" height="" src="https://cdn.wallethub.com/edu/images/posts/20018/x.png" class="aligncenter size-medium wp-image-20018" /> = regress, <img width=" height="" src="https://cdn.wallethub.com/edu/images/posts/16910/checkmark.png" class="aligncenter size-medium wp-image-16910" /> = paydown

The credit card charge-off rate increased by 23.77% during Q1 2023, finishing at 3.02%.

The average household’s credit card balance is $9,654. That is $2,566 below WalletHub’s projected breaking point for household finances.

Note: *Overall Rank, 1 = Biggest Year-Over-Year Increase in Credit Card Debt

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Federal Reserve and TransUnion.

WalletHub’s quarterly credit card debt studies are based on analysis of the latest data on consumers’ finances available from TransUnion as well as the Federal Reserve and Bureau of Labor Statistics.

Quarterly changes in credit card debt levels include both the total amount outstanding (revolving credit, not seasonally adjusted) and charged-off debt (not seasonally adjusted) that is no longer on credit card companies’ books but consumers continue to owe. Outstanding and household debt amounts are adjusted for inflation with data from the Bureau of Labor Statistics.

Net Result of Consumer Credit Card Debt Q1 2008 – Q1 2023

Net Result in Debt Load – Green indicates that consumers decreased their debt relative to the previous quarter. Red indicates they increased their debt relative to the previous quarter.

Relative to Same Period – Green indicates that consumers either paid down more debt or accumulated less debt than they did in the previous two years. Red indicates that they either paid down less debt or accumulated more debt than they did in the same quarter in the previous two years.

Consumer Credit Card Debt and Charge-off Data (in Billions) Q1 1986 – Q1 2023:

*Numbers may differ from year to year due to the fact that the Federal Reserve regularly retroactively updating figures. Questions or requests for information can be directed to our media department.

FED RATE HIKE REPORT

WALLETHUB COMMENTARY

In order to pay off $2,000 in credit card debt within 36 months, you need to pay $72 per month, assuming an APR of 18%. While you would incur $608 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $3,000 in credit card debt within 36 months, you need to pay $109 per month, assuming an APR of 18%. While you would incur $912 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $10,000 in credit card debt within 36 months, you need to pay $362 per month, assuming an APR of 18%. While you would incur $3,039 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $7,000 in credit card debt within 36 months, you need to pay $254 per month, assuming an APR of 18%. While you would incur $2,127 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $40,000 in credit card debt within 36 months, you need to pay $1,449 per month, assuming an APR of 18%. While you would incur $12,154 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $9,000 in credit card debt within 36 months, you need to pay $326 per month, assuming an APR of 18%. While you would incur $2,735 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $1,000 in credit card debt within 36 months, you need to pay $36 per month, assuming an APR of 18%. While you would incur $304 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $5,000 in credit card debt within 36 months, you need to pay $181 per month, assuming an APR of 18%. While you would incur $1,519 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

In order to pay off $25,000 in credit card debt within 36 months, you need to pay $905 per month, assuming an APR of 18%. While you would incur $7,596 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

The best way to pay off credit card debt is as soon as possible. And you can save both time and money by using a credit card payoff calculator as well as a 0% balance transfer credit card, if you have good or excellent credit. You can check your latest credit score for free on WalletHub to find out.

The more credit card debt you owe and the more balances you have, the more complicated things can get. That's why you need a plan. Below, we'll explain the best ways to pay off credit card debt as quickly and inexpensively as possible, starting with WalletHub's preferred method.

How To Pay Off Credit Card Debt in 6 Easy Steps

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