Average Credit Card Debt Drops Almost 30 Percent

ROCKVILLE, MD. – According to the annual Credit Card Survey by Myvesta.org, a nonprofit consumer education organization, the average amount of credit card debt carried by individuals has dropped by 29.4 percent. The average American is now carrying $2,294 in credit card debt, down from $3,250 in 2002. Individual’s wallets also have lightened up slightly over the past year with Americans now carrying an average of 2.3 credit cards, down from 2.5 in 2002.

“Over the past year we have seen many people lower their credit card balances by cutting back on their credit card use or tapping the equity in their homes,” said Steve Rhode, president and co-founder of Myvesta.org. “But with people planning on spending 15 percent more on their holiday shopping this year, let’s hope this holiday season doesn’t ruin all the progress they have made.” According to Myvesta.org’s Holiday Spending Survey, the average American plans on shelling out $835 this year for holiday gifts.

Other results from the Myvesta.org Credit Card Survey include:

Males have an average of $2,877 of credit card debt; females have an average of $1,733.

People aged 18–24 have an average of $1,208 of credit card debt. Those in the 25–34 age bracket average $2,245; people 35–44 average $3,846; people 45–54 average $2,655; people 55–64 average $1,612, and those aged 65 and older have an average of $1,214 of credit card debt.

People in the Northeast carry the largest credit card balances with an average of $3,527 each. Those in the Midwest have the smallest average balances with $1,712. Individuals in the South have an average of $1,929 on their cards and those in the West carry an average balance of $2,524.

“While many Americans are taking steps to reduce their debt load, those who have been struggling with financial problems are finding themselves deeper in debt,” Mr Rhode said. “We saw the average credit card debt of Myvesta.org clients rise to $77,036 this year from $52,210 in 2002.”  Mr Rhode encourages people who are finding it hard to keep up with their payments to seek professional help before their debt gets out of control.