Credit card debt varies significantly, but recent US data shows averages around $5,000-$5,600 per person carrying debt, with many owing much more, while Australian figures hover around $3,500-$5,300 per account, with significant portions of the population carrying balances due to rising costs. The key takeaway is that millions carry balances, with significant debt levels increasing due to living costs, and interest rates making it expensive.
Tally your current credit card situation
If you owe money on one or more credit cards, you're not alone. According to the Reserve Bank of Australia (RBA), Australians collectively have around 14.7 million credit cards and owe around $33 billion on them.
U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.
The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.
Debt is only an issue if you can't afford to pay it off. $5000 might as well be $100000000 if you have no income and can be a source of great stress. If you have the income to pay it off quickly or in full in one lump sum, then it's not an issue at all.
The 2-2-2 credit rule is a common underwriting guideline lenders use to verify that a borrower: Has at least two active credit accounts, like credit cards, auto loans or student loans. The credit accounts that have been open for at least two years.
For a ₹30,000 monthly salary, a credit card limit between ₹60,000 and ₹90,000 is generally considered standard. Some lenders may offer up to 3 times your income, which could be ₹90,000, while the minimum might be double your income, or ₹60,000. A limit above ₹90,000 would be considered a "high" limit.
How Much You Should Spend With a $20,000 Credit Limit. Spending between $200 and $2,000 per month is best for your credit score. You should avoid having a balance above $6,000 when your monthly statement gets generated.
The best credit card that is rumored to have a $100,000 credit limit is the Chase Sapphire Preferred® Card. While Chase does not publicly disclose the highest credit line available for the card, there are online reports of people getting around $100,000 in spending power, or even more.
The 2/3/4 rule: According to this rule, applicants are limited to two new cards in 30 days, three new cards in 12 months and four new cards in 24 months. The six-month or one-year rule: Some credit card issuers may let borrowers open a new credit card account only once every six months or once a year.
Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.
If you're spending more than 36% of your income on all debt obligations (including your mortgage, car loans and credit cards), that's generally considered high. For credit card debt alone, any DTI ratio above 10% of your monthly income should raise concerns.
Poverty and housing pressures
It comes as the University of New South Wales' Poverty in Australia 2025 report found one in seven Australians — or 3.7 million people — are living below the poverty line, up from one in eight in 2020-21.
Depending on your financial situation, it may be more helpful to pay off your debts first before saving money. Paying off credit card debt can help improve your score. There are several methods — like the snowball method or avalanche method — to help pay off debts.
The "15" and "3" refer to the days before your credit card statement's closing date. Specifically, the rule suggests you make one payment 15 days before your statement closes and another payment three days before it closes.
Here are the cards the ultra wealthy keep to themselves.
For instance, if you earn ₹50,000 monthly, your initial credit limit might range between ₹1 lakh and ₹1.5 lakhs. However, this multiplier can vary based on other factors. Employment stability also plays a crucial role.
The credit limit you can expect for a $75,000 salary across all your credit cards could be as much as $15000 to $22500, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.
Using 90% of your credit card limit results in a very high credit utilization ratio, which can significantly hurt your credit score. Lenders view high utilization as a sign that you might be overextended and at a higher risk of missing payments.
Start chipping away at your highest-interest debt first.
Every dollar counts. Once you pay off that credit card or other high-interest debt, put the money you were paying on your highest interest debt—the minimum plus the little extra—towards the debt with the next highest interest rate.
Paying 5.0% of the balance (with interest)
If you're able to pay about 5% of the balance each month on a $30,000 credit card bill, it will take 169 months, or about 14 years, to pay off your balance. You'll also pay $17,271.80 in total interest charges over the 14-year time frame.
For him, money is just a resource that enables Reliance Industries to take risks for further growth. And the answer to the million-dollar question is Mukesh Ambani himself reveals that he never carries cash or credit cards in his pocket. According to Ambani, he always has someone nearby to pay his bills.
Working backward from the an ideal credit utilization of 10% to 30%, if you typically spend around $5,000 a month on your card, you should have a limit of $50,000, Tsantes says. By the same metric, if you typically spend around $2,500 on your card, $25,000 could be a good limit, he adds.