In the UK alone, the average total personal debt was £33,410 in March 2022, a significant rise of £1,767 since January 2020. That equates to around 107% of average earnings per adult.
According to Experian, average total consumer debt in 2022 was $101,915. That's up nearly 10% from 2020, when average total consumer debt was $92,727.
But just because a $15,000 balance isn't rare doesn't mean it's a good thing. Credit card debt is seriously expensive. Most credit cards charge between 15% and 29% interest, so paying down that debt should be a priority.
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.
Families with the lowest quartile of net worth (median net worth of $310) have an average of $4,830 in credit card debt, although only 44.3% have card debt. Residents in the West have the highest average credit card debt at $7,000.
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill? Well, that's not impossible either, though it is considerably less fun.
Most lenders say a DTI of 36% is acceptable, but they want to lend you money, so they're willing to cut some slack. Many financial advisors say a DTI higher than 35% means you have too much debt. Others stretch the boundaries up to the 49% mark.
The average credit card debt by age in the UK is £5,400. This means that the average person has a total of £1,600 in credit card debt at any one time. If you don't pay off this debt, it will have a big influence on your life.
A bad debt is one that will not be paid, typically because the debtor is a company that no longer exists or isn't able to pay for some other reason.
Many people ask, "how many credit cards should I have?" when working out their finances. And although the average number of credit cards held by people in the UK is 1.7, it doesn't mean that only one credit card is the right number for you.
Many people would likely say $30,000 is a considerable amount of money. Paying off that much debt may feel overwhelming, but it is possible. With careful planning and calculated actions, you can slowly work toward paying off your debt. Follow these steps to get started on your debt-payoff journey.
This compares annual payments to service all consumer debts—excluding mortgage payments—divided by your net income. This should be 20% or less of net income. A ratio of 15% or lower is healthy, and 20% or higher is considered a warning sign.
$20,000 is a lot of credit card debt and it sounds like you're having trouble making progress,” says Rossman.
A bleak new study has revealed that the average Australian is in more than $20,000 worth of personal debt, equating to over $70 billion nationwide. The research, conducted by consumer specialists Finder, found that a year ago the majority of Aussies had a personal outstanding debt of around $18,000.
According to a study from Invezz, Australia's household debt is the fifth highest in the world, at about $86,000 per household. Given that the average available income is only $42,554, the amount of debt owed by households is a whopping 203%.
Average household debt grew by 7.3 per cent to $261,492 in 2021-22, according to the latest figures from the Australian Bureau of Statistics (ABS).
Not being able to pay debts is not a criminal offence; you generally won't go to prison for it. Many people in the UK could legally write off some of their debt.
For most types of debt in England, Wales and Northern Ireland, the limitation period is six years. This applies to most common debt types such as credit or store cards, personal loans, gas or electric arrears, council tax arrears, benefit overpayments, payday loans, rent arrears, catalogues or overdrafts.
Worse than being in debt is losing your peace.
It's called being human. For some people that adversity takes the form of being in debt. The main thing is to keep your peace, to know that God is taking care of each of us, and to remember to trust Him to provide.
The average debt per person is 105% of the average UK yearly salary. The average household debt in the UK is £65,434 in 2023, up by £1,852 compared to 2022. Household debt is approximately 131% of household disposable income. The average credit card debt per household in 2023 is £2,277, the highest in 3 years.
UK credit card statistics
In the UK, 68% of adults have at least one credit card. Of these, 46% have more than one credit card, with over half of these (56%) being acquired online.
Like we said, it's totally normal to have debt hanging around your neck. Don't believe us? A shocking 77% of Americans have some type of debt—that's nearly 8 out of every 10 people!
Lots of people have credit card debt, and the average balance in the U.S. is $6,194. About 52% of Americans owe $2,500 or less on their credit cards. If you're looking at $5,000 or higher, you should really get motivated to knock out that debt quickly.
Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt.