Credit Karma’s State of Debt and Credit Report

October–December 2023

Updated April 29, 2024

Written by: Rebecca Moran

A picture of average American debt through Credit Karma’s members

Credit Karma Stat Snapshot

Average total debt:

$53,260

Generation with highest YoY increase in total debt:

Gen Z

Average credit card debt:

$7,288 (+12.66% year over year)

Average mortgage debt:

$253,386 (+7.73% YoY)

Average credit score:

671

Average credit inquiries

3.4

Average overall debt

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This report provides a picture of average American debt through 84.9 million Credit Karma members with a combined overall debt of more than $8 trillion. Overall debt is defined as any type of debt noted on a Credit Karma member’s credit report. This includes credit card, mortgage, student loan, medical loan, auto lease and auto loan debt.

Average total debt increased year over year, with younger generations and members in the subprime score band seeing the most growth

Between October and December 2023, average total overall debt among Credit Karma members was $53,260, a 7.7% increase compared to an average of $49,454 from October to December 2022.

All generations saw an increase in debt, with Gen Z and Millennials seeing the largest growth at 19.39% and 13.4%, respectively, year over year. Similarly, all credit score bands saw an increase in total average debt, particularly members in the subprime score band, who saw a 22.46% increase compared to October to December 2022.

Increases in credit card and mortgage debt drove much of the increase in overall average debt. Average credit card debt rose across all score bands and generations (except the Silent Generation), with the largest increases in members falling in the subprime score band and in Gen Z and Millennial members. Similarly, members in the subprime and near prime score bands along with Gen Z members saw the most growth in average mortgage debt.

Average collections accounts and inquiries decreased year over year

Despite increases in average debt, there was a year-over-year decrease in the average number of open collections per member with an account in collections across all generations and score bands — except for the subprime score band, where average open collections increased from 3 per member in October to December 2022 to 3.9 in October to December 2023.

The average number of inquiries per member decreased year over year as well, dropping by 19.05%. This suggests that members, on average, racked up more debt on existing credit and loan accounts versus new ones.

Average debt among Credit Karma members broken out by generation

As generational age increased, the percent change of debt decreased. Gen Z saw the largest increase in debt, though their overall average debt was much lower than other generations.

Average debt among Credit Karma members by credit score band

As scores increased, so too did average overall debt. This may be because people with higher credit scores have greater access to credit on better terms. But while members with lower scores had less debt, their average total debt increased the most year over year.

Average credit card debt

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In the fourth quarter of 2023, approximately 79.4 million Credit Karma members with at least one credit card held a total of nearly $473.9 billion in credit card debt.

The average credit balance among members during the period of October to December 2023 was $7,288, compared to $6,469 in October to December 2022. That represents a 12.66% increase in average credit card debt. The average next payment was $202.

Year-over-year data reveals that younger generations and members outside of prime score bands, in particular, increasingly relied on credit cards over the past year.

Average credit card debt among Credit Karma members by generation

Gen X continued to have the most credit card debt in the fourth quarter of 2023, but Gen Z, followed by Millennials, increased their credit card balances by the largest percent year over year.

Average credit card debt among Credit Karma members by credit score band

Members with subprime credit saw the largest increase in average card debt (28.06%), reaching nearly the same amount of average card debt as prime members.

Average auto loan debt

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In the fourth quarter of 2023, approximately 59.9 million Credit Karma members with at least one auto loan open held more than $926 billion in loan debt. The average next payment was $627.

The average auto loan balance among members was $25,307, representing a 5.26% increase over the average of $24,042 in October to December 2022.

Average auto loan debt among Credit Karma members by generation

Average auto loan debt among Credit Karma members by credit score band

Average mortgage debt

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In October through December 2023, approximately 31.4 million Credit Karma members with at least one mortgage held a total of nearly $5.9 trillion in mortgage debt. The average mortgage balance among members was $253,386, a 7.73% increase from $235,194 in October to December 2022. The average next payment was $1,881.

Average mortgage debt among Credit Karma members by generation

Generation Z saw the largest increase in average mortgage debt year over year, though Millennials continued to have the highest average mortgage debt in October to December 2023.

Average mortgage debt among Credit Karma members by credit score band

Members in the lower score bands saw the biggest year-over-year increases in average mortgage debt, but members with prime scores continued to have the most mortgage debt on average in October to December 2023.

Average student loan debt

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In the fourth quarter of 2023, approximately 29.9 million Credit Karma members with at least one student loan open held a total of $709.7 billion across 79.4 million student loans. The average next payment was $125.

The average student loan balance among members in the fourth quarter of 2023, was $30,072, which is 4.07% lower than during October to December 2022. This was the only category of debt that experienced a decrease in average total debt year over year.

Average student loan debt among Credit Karma members by generation

Average student loan debt among Credit Karma members by credit score band

Average credit scores

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The average VantageScore 3.0 credit score for Credit Karma members with debt was 671 in the fourth quarter of 2023, but the median was a little higher at 679. Both fall in the prime range. These scores are similar to that of members with debt in October to December 2022 — the average credit score then was 673, and the median was 682.

Average VantageScore 3.0 score among Credit Karma members with debt by generation

Accounts in collections

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For this report, accounts in collections are any credit card, mortgage, student loan, medical loan, auto lease or auto loan accounts that have been sent to collections agencies, according to their credit reports. Creditors may have different standards for when they transfer debt to collections, but the typical cutoff is 120 to 150 days past due. For this report, we’re able to determine if an account is in collections but not how many days past due it is.

Among Credit Karma members with accounts in collections, the average number of open accounts in October through December 2023 was 2.3 — lower than 2.6 in October through December 2022. In fact, the average number of open collection accounts decreased year over year across generations and score bands, with the exception of members in the subprime score band, who saw a year-over-year increase from an average of 3 open collections accounts to 3.92.

Keep in mind that this measure only looks at members who have accounts in collections, not the Credit Karma member population as a whole. That means that it only captures people who are already potentially struggling with their finances.

Average number of accounts in collections by VantageScore 3.0 credit score band

Average credit inquiries

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For this report, credit inquiries are applications for new credit, such as credit cards or loans. During October through December 2023, Credit Karma members averaged 3.4 credit inquiries, down by nearly one inquiry on average from 4.2 in October through December 2022.

The average number of inquiries dropped across all score bands and generations, with the exception of the Silent Generation (up slightly year over year from 2.97 to 3.1), revealing that members applied for fewer credit and loan products toward the end of 2022 compared to the end of 2023.

Average number of credit inquiries by Credit Karma members by VantageScore 3.0 credit score band

Average number of credit inquiries by Credit Karma members by generation

Methodology

This report drew on insights from the aggregated reports of roughly 85 million Credit Karma users. All aggregate data analyzed was pulled on January 4, 2024, and came from members’ TransUnion credit reports. Averages were based on information from the previous 90 days.

Average Credit Card Debt in America in 2023

A Credit Karma Study

Updated June 22, 2023

Written by: Rebecca Moran

Card debt is on the rise — up 4.4% since May 2022; Gen Z and members with lower credit scores see highest debt growth.

According to our Feb. 7, 2023, report of 74 million Credit Karma members with credit cards, Credit Karma members held more than $397 billion in credit card debt across more than 318 million open accounts. Average credit card debt by member was $6,469 — a 4.4% increase from May 2022.

Gen Z and members with credit scores of 660 and lower saw the highest growth in average debt from May 2022 to February 2023.

Read on for more findings, including a breakdown of credit card debt by generation, state and more. Learn more about our methodology.

Credit Karma Stat Snapshot

Generation with highest average credit card debt:

Gen X

Generation with lowest average credit card debt:

Gen Z

State with highest average credit card debt:

Alaska

State with lowest average credit card debt:

Mississippi

Average credit card monthly payment:

$181

Average credit card debt by generation

Generation X and baby boomer Credit Karma members, respectively, hold the highest average credit card debt, while Generation Z has the least. The average credit card debt carried members of Gen X is nearly triple the average credit card debt carried by members of Gen Z. But while Gen Z has the lowest average card debt, they saw the highest growth (7.4%) in average card debt from May 2022 to February 2023, followed by Millennials.

Generation X and baby boomer Credit Karma members, respectively, hold the highest average credit card debt, while Generation Z has the least. The average credit card debt carried by baby boomers and members of Gen X is around triple the average credit card debt carried by members of Gen Z.

Average credit card debt by state

Alaska tops the list, with members having the highest average credit card debt at $8,139, followed by Hawaii ($7,444) and New Jersey ($7,306). Members in Mississippi have the lowest average debt — $5,259. Kentucky is close behind with an average credit debt of $5,455.

Here is credit card debt by state, sorted alphabetically.

Higher average credit card debt may be due, in part, to where members live. Those with the lowest average credit card debt tend to live in states we have identified as some of the cheapest states to live in. Conversely, those with the highest average debt live in some of the states ranked the most expensive.

Average credit card debt by credit score

Credit Karma members with higher VantageScore 3.0 credit scores tend to have lower average credit card debt. Those with scores of 601 to 660 have the highest average debt — $9,295 — while those with scores of 781 to 850 average $3,345 in credit card debt.

Those with scores of 300 to 600 are an exception, with $5,684 in average card debt.

Members with lower scores saw the highest growth in average card debt from May 2022 to February 2023, while those in the highest score range saw the least.

A longer account history and lower credit card utilization can help improve credit scores.

Average monthly credit card payment

The average next credit card payment for Credit Karma members is $181. But the average payment is naturally higher for those with higher total credit card debt. For example, Gen X members average $8,266 in credit card debt and have an average next payment of $233. On the flip side, Gen Z members have an average of $2,781 in total card debt and an average next payment of only $83.

Tips for managing credit card debt

Mounting credit card debt can feel overwhelming, but the good news is that there are things you can do to find credit card relief. Here are some suggestions.

Negotiate with your credit card company

If you’ve already missed a payment or are about to, reach out to your credit card issuer. The company may be willing to work out a more manageable repayment plan for you. Some offer forbearance or hardship programs that could reduce your monthly payment or postpone a certain number of payments. You may even be able to settle your debt for a lower amount if the company determines that you aren’t able to pay back the full amount.

If you are able to work out an alternate repayment plan with your creditor, be sure to ask for the plan in writing.

Consider a personal loan to consolidate credit card debt

Consolidating your credit card debt into a personal loan may help you pay your debt off faster. With a debt consolidation personal loan, you make a single payment each month, and your interest rate is fixed, meaning it won’t change based on an index. Another benefit: Interest rates on personal loans tend to be lower than credit card rates. This can help lower your overall monthly payment and/or allow you to pay down your debt more quicky.

Take note that personal loans may come with fees, such as an origination fee or paperwork processing fee. Consider these fees when determining whether you might be able to save money with debt consolidation.

Methodology

To determine averages across credit card debt, we analyzed the accounts of more than 74 million U.S. Credit Karma members who had been active on the site within the last 36 months and who have credit card accounts. All aggregate data analyzed was pulled on Feb. 7, 2022. The data came from members’ TransUnion credit reports, and the averages were based on information from the last 90 days. For the purposes of this analysis, credit card debt is defined as any unpaid balance existing on members’ open credit cards in aggregate at the time the data was pulled. All numbers in this report were rounded to the nearest whole.