Credit Karma’s State of Debt and Credit Report

October-December 2024

Updated February 4, 2025

Written by: Rebecca Moran

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

Credit Karma Stat Snapshot

Average total debt:

$55,879

Generation with highest average total debt:

Gen X

Generation with highest YoY increase in total debt:

Gen Z

Average credit card debt:

$7,798

Average mortgage debt:

$262,997

Average credit score:

676

Average overall debt

This report provides a picture of average American debt through 90.8 million Credit Karma members with a combined overall debt of more than $8.8 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 slightly up year over year in the fourth quarter of 2024; growth in average debt — except student loan debt — slowed across generations and credit bands

Between October and December 2024, average total overall debt among Credit Karma members was $55,879, a 4.92% year-over-year increase from $53,260 from October to December 2023. Despite this increase, year-over-year growth in average debt was lower across all but one category when compared to YoY growth in the fourth quarter of 2023. In the student loan category, however, average debt increased YoY by 3.14%, compared to a 4.07% YoY drop in October to December 2023.

Among the generations Generation Z experienced the highest YoY growth in average debt across all categories except auto loans in the fourth quarter of 2024. Most notably, the generation saw an 11.82% YoY increase in average overall debt and 10.28% YoY increase in average credit card debt. Still, Gen Z experienced less growth in YoY debt than in the fourth quarter of 2023. For example, Gen Z had a 22.73% YoY jump in average card debt in October to December 2023 — more than 12 percentage points higher than in Q4 2024.

Members in the super prime score band saw the highest YoY increases in average debt across categories except overall debt. This segment had the most YoY growth (10.08%) in average credit card debt. Similar to the generations, though, members in all score bands experienced slower YoY average debt growth across categories in the fourth quarter of 2024 compared to 2023. Notable exceptions were the YoY growth in card debt among members with super prime credit (up 10.08% YoY in Q4 2024 compared to 1.46% in Q4 2023), as well as YoY jumps in average student loan debt growth for all members with student loan debt.

Average inquiries down YoY; average open collections up for members in lower score bands

Year-over-year average debt growth may have slowed because members might be exercising more caution when it comes to taking on more debt. Average inquiries per member were down nearly 9% YoY across generations and score bands, indicating that members applied for fewer credit cards and loans. 

This hesitance may be due to increased financial hardship, particularly among members with lower credit scores. Average open collection accounts per member with a collection account(s) on their credit report remained relatively flat YoY, though members in the subprime and near prime score bands experienced more significant jumps (2.7 to 2.9 and 2 to 2.2, respectively).

Average debt among Credit Karma members broken out by generation

For the second year in a row, Gen Z saw the highest year-over-year growth in total average debt, while Generation X continues to hold the highest average amount of debt.

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 in the subprime score band had the least debt, their average total debt increased the most year over year for the second year in a row. It’s worth noting, however, that the rate of growth slowed considerably in Q4 2024 compared to Q4 2023 (8.2%) versus Q4 2023 compared to Q4 2022 (22.46%).

Average credit card debt

In the fourth quarter of 2024, approximately 85.7 million Credit Karma members with at least one credit card held a total of approximately $536.9 billion in credit card debt.

Similar to last year, members saw the most average debt growth in the credit card category, though growth slowed in 2024. In the fourth quarter of 2023, average credit card debt was up 12.66% YoY. In contrast, the average card balance among members during the period of October to December 2024 was $7,798 — a 7% YoY increase in average credit card debt.  The average next payment was $209.

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 2024, but Gen Z again saw the highest YoY increase in average credit card debt (10.28%), followed by Millennials (9.40%).

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

Whereas average card debt grew the most (28.06%) among members with subprime credit in the fourth quarter of 2023 compared to the fourth quarter of 2022, members in the higher credit score bands had the most growth YoY in Q4 2024. Near prime members continued to have the highest average card balances.

Average auto loan debt

In the fourth quarter of 2024, approximately 63.7 million Credit Karma members with at least one auto loan open held more than $962 billion in loan debt.

The average next payment was $656.The average auto loan balance among members continued to remain nearly flat at $25,391 — only a 0.33% YoY increase from $25,307 in October through December 2023.

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

In October through December 2024, approximately 33.7 million Credit Karma members with at least one mortgage held a total of more than $6.5 trillion in mortgage debt. The average mortgage balance among members was nearly flat year over year at $262,997, a 3.79% increase from $253,386 in October to December 2023. The average next payment was $2,061.

Average mortgage debt among Credit Karma members by generation

Similar to last year, Millennials and Generation Z saw the biggest YoY increases in average mortgage debt, though growth slowed, from 9.08% in the fourth quarter of 2023 to 4.70% for Millennials and from 14.05% to 7.11% for Generation Z.

Average mortgage debt among Credit Karma members by credit score band

Average mortgage debt increased the most year over year among members in the higher credit score bands. This is a shift from the fourth quarter of 2023, when average mortgage debt grew the most among those in the lower score bands.

Average student loan debt

The student loan category was the only category with a higher year-over-year increase in average debt in Q4 2024 than in Q4 2023. In the fourth quarter of 2024, approximately 31.2 million Credit Karma members with at least one student loan open held a total of $747.5 billion across 81.8 million student loans.

The average next payment was $118.The average student loan balance among members in the fourth quarter of 2024 was $31,667 — up 3.14% compared to the fourth quarter of 2023, when student loan debt was down 4.07% YoY.

Average student loan debt among Credit Karma members by generation

Year-over-year growth in average student loan picked up in the fourth quarter of 2024 versus the same period in 2023, especially among the younger generations. Average student loan debt among Generation Z increased by 7.96% compared to a 4.70% year-over-year increase in the fourth quarter of 2023. Millennials, who saw a year-over-year decrease in average student loan debt in October to December 2023, experienced a 5.41% increase in 2024.

In fact, all generations except the Silent Generation saw a higher year-over-year increase in average student loan debt in October to December 2024 versus the same period in 2023.

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

Average credit scores

The average VantageScore 3.0 credit score for Credit Karma members with debt was 676 in the fourth quarter of 2024, but the median was a little higher at 681. Both fall in the prime range. These scores are slightly up from that of members with debt in October to December 2023 — the average credit score then was 671, and the median was 679.

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

Accounts in collections

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 to December 2024 was 2.4 — relatively flat from 2.3 in the fourth quarter of 2023. Only members in the highest score band saw a year-over-year decrease (10%) in average open collection accounts. Members in the subprime and near prime score bands experienced the highest YoY increases.

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

For this report, credit inquiries are applications for new credit, such as credit cards or loans. During October to December 2024, Credit Karma members averaged 3.1 credit inquiries, a slight YoY drop from 3.4.

The average number of inquiries dropped across all score bands and generations year over year for the second year in a row, revealing that members, particularly those in the lower score bands, continue to apply for fewer credit and loan products.

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 90.8 million Credit Karma users. All aggregate data analyzed was pulled on January 6, 2025, 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.