Credit Card Statistics

The Federal Reserve Board conducts a Survey of Consumer Finances every three years. The most recent survey was conducted in 2007 and included about 4,500 families (chosen randomly) to represent all economic groups. The survey includes all types of financial data, but of particular interest are the statistics on the amount of credit card debt consumers owe.

2001 vs. 2007: a few notable credit card statistics

• From 2001 to 2007, the percentage of families holding credit card debt rose from 44.4% to 46.1%.
• From 2001 to 2007, the percentage of families in the bottom 25% net worth bracket holding credit card debt fell from 45.5% to 41%. During the same time period, the percentage of families in the top 10% net worth bracket holding credit card debt rose from 22.4% to 30.3%!
• The median value of credit card debt held by all families in 2007 was $3,000. This was up from $2,225 in 2001 (shown in 2007 dollars, adjusted for inflation).

High earners vs. low earners

The survey also reveals that people who earn the most also owe the most to credit card companies. The chart below shows that people in the higher income percentiles owe a significantly higher median value on their credit cards than those in the lower income percentiles.

Homeowners vs. renters

Interestingly, homeowners owe more on credit cards than renters do, perhaps because more credit is made more available to them. In 2007, renters owed a median value of $1,300, while homeowners owed a median value of $3,600.

Urban vs. rural

Households in urban areas also owed more to credit cards than people in rural areas in 2007. The Fed defines "urban" as any household falling within a metropolitan statistical area and "rural" as any household falling outside of an MSA. Rural households owe a median value of $2,000 to credit cards while urban households owe a median value of $3,000.

Under 35 vs. over 35

Families with a head of household under the age of 35 have a median credit card debt of $1,800 while households over the age of 35 owe, on average, between $3,000 and $3,600.

Loners over 55 vs. couples with children

In 2007, single-person households over the age of 55 were the group least likely to hold credit card debt (only 30.5% of this demographic carried credit card debt). Couples with children were the most likely to carry credit card debt (55.7% of this demographic carried credit card debt in 2007). Couples with children also had the highest median value of credit card debt, owing $4,100.

When the Federal Reserve updates these statistics for 2010, we will surely see significant changes in credit card debt statistics due to the housing market decline and tightening of the credit market. It should also be noted that, while the Fed survey’s data is very informative, it does leave some holes. The Fed doesn’t collect or publish any information relating to credit scores. As credit scores are so important to a family’s finances, it seems a relevant layer to add to future surveys.