According to Federal Reserve data, America’s outstanding revolving debt – mostly credit card debt – stood at $1.055 trillion at the end of 2018. Who holds most of that debt?
ValuePenguin’s report on average credit card debt in America shows that households with the lowest net worth (zero or negative) have the highest average debt ($10,307). However, with respect to age and income levels, ValuePenguin data suggests that you’re more likely to hold the most debt if you are from 45 to 54 years old and have an income greater than $160,000.
Isn’t that contradictory? It seems that way at first glance, but there’s a difference between net worth and income. Households with higher incomes carry higher balances because they’re more likely to be able to pay them off whenever they choose. Households with no net worth are more likely to carry high balances because they have to.