Credit Karma’s State of Debt and Credit Report

April-June 2024

Updated August 19, 2024

Written by: Rebecca Moran

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

Credit Karma Stat Snapshot

Average total debt:

$55,130

Generation with highest average total debt:

Gen X

Generation with highest QoQ increase in total debt:

Gen Z

Average credit card debt:

$7,428

Average mortgage debt:

$259,407

Average credit score:

678

Average overall debt

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This report provides a picture of average American debt through 88.5 million Credit Karma members with a combined overall debt of more than $8.5 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 nearly flat quarter over quarter; growth in average debt — except credit card debt — continued to slow across generations and credit bands

Between April and June 2024, average total overall debt among Credit Karma members was $55,130, a 0.70% quarter-over-quarter increase compared to an average of $54,748 from from January to March 2024.

All generations continued to see nominal increases in debt, ranging from 0.48% for the Baby boomer generation to 2.14% for Gen Z. Similarly, all credit score bands experienced small increases in total average debt, from 0.30% for members with VantageScore 3.0 scores ranging from 781 to 850 to 1.42% for members with scores ranging from 300 to 600.

Average credit card debt picked up the pace, particularly among Gen Z

Driving the small increase in total average debt was credit card debt, with a 1.77% QoQ increase. Members in every generation and score band experienced faster quarter-over-quarter growth in card debt than in Q1. Within Gen Z, in particular, average card debt rose 3.21% — the largest increase in average debt across all categories, generations and score bands for Q2. 

Conversely, there was slower growth, or even declines, across generations and score bands for the other debt categories, compared to Q1. Average auto loan (0.11% QoQ increase), student loans (0.22% QoQ increase) and mortgage (0.71% QoQ increase) debt were nearly flat quarter over quarter.

Average debt among Credit Karma members broken out by generation

Over the last year — with the exception of the first quarter of 2024 — Gen Z has typically seen the highest quarter-over-quarter growth in total average debt. In the second quarter, Gen Z once again saw the highest growth among generations, though it was nominal (2.14%).

Average debt among Credit Karma members by credit score band

From Q1 to Q2, the highest growth in total debt shifted from members with the highest credit scores to those in the subprime score band.

Average credit card debt

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In the second quarter of 2024, approximately 83 million Credit Karma members with at least one credit card held a total of approximately $497.5 billion in credit card debt.

The average credit balance among members during the period of April to June 2024 once again remained nearly flat (1.77% increase) at $7,428, compared to $7,299 in January through March. The average next payment was $204.

Average credit card debt among Credit Karma members by generation

Gen X continued to have the most credit card debt in the second quarter of 2024 but Gen Z saw the highest increase in average credit card debt (3.21%), followed by Millennials (2.41%).

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

While members with subprime credit saw the largest increase in average card debt (1.88%) from Q4 2023 to Q1 2024, members in the two higher score bands experienced the highest growth in average debt from Q1 to Q2 — 3.18% for super prime members and 3.10% for prime members.

Average auto loan debt

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In the second quarter of 2024, approximately 62 million Credit Karma members with at least one auto loan open held more than $947 billion in loan debt. The average next payment was $645.

For the second quarter in a row, the average auto loan balance among members remained nearly flat at $25,322 — a 0.11% increase from $25,295 in January through March 2024.

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 April through June 2024, approximately 32.7 million Credit Karma members with at least one mortgage held a total of more than $6.3 trillion in mortgage debt. The average mortgage balance among members was nearly flat at $259,407, a 0.61% increase from $257,840 in January to March 2024. The average next payment was $1,977.

Average mortgage debt among Credit Karma members by generation

Similar to last quarter, Millennials and Generation Z saw the biggest quarter-over-quarter increase in average mortgage debt, though growth slowed, from 2.02% and 2.01% to 0.71% and 1.64%, respectively.

Average mortgage debt among Credit Karma members by credit score band

Despite seeing the biggest quarter-over-quarter increase in average mortgage debt in Q1, members in the highest score band saw the lowest growth in the second quarter, at just 0.23%. The highest increase in average mortgage debt took place among members in the subprime score band, though it was only 0.96%.

Average student loan debt

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In the second quarter of 2024, approximately 30.7 million Credit Karma members with at least one student loan open held a total of nearly $733.8 billion across 80.3 million student loans. The average next payment was $106.

The average student loan balance among members in the second quarter of 2024 was $31,334, only a 0.22% increase from January to March 2024.

Average student loan debt among Credit Karma members by generation

Despite 4.7% year-over-year growth (fourth quarter of 2022 compared to 2023) in average student loan debt among Gen Z and 6.19% quarter-over-quarter growth in Q1, the increase from April to June dropped to 1%, suggesting that Gen Z is taking on student loan debt at a slower pace. 

In fact, quarter-over-quarter increases in average student loan debt slowed across all generations (except Baby boomers, with a 1.09% increase in Q2 versus a 0.97% increase in Q1).

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 678 in the second quarter of 2024, but the median was a little higher at 683. Both fall in the prime range. These scores are a decrease from that of members with debt in January to March 2024 — the average credit score then was 699, and the median was 718. The declines in average and median scores are due largely to increases in average debt across categories for members with scores in the subprime band.

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 April to June 2024 was 2.33 — slightly up from 2.28 in January to March 2024. Only members in the highest score band saw a quarter-over-quarter decrease (4%) in average open collection accounts.

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 among Credit Karma members by generation

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 April to June 2024, Credit Karma members averaged 3.28 credit inquiries, nearly flat with 3.32 in January to March 2024.

The average number of inquiries dropped slightly across all score bands and generations, revealing that members continued to apply for fewer credit and loan products last quarter.

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 88.5 million Credit Karma users. All aggregate data analyzed was pulled on July 5, 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.