Households With Lowest Net Worth Have Highest Credit Card Debt

MoneyTips

America's total outstanding balance on revolving credit, primarily credit card debt, is over $1.03 trillion. How much of that $1.03 trillion balance is yours? According to recent data from ValuePenguin, you're more likely to have a greater share of that balance if you're in one of two groups – the poorest or the wealthiest Americans.

The average credit card debt for households with zero or negative net worth is $10,307 – not surprising since if you have a negative net worth, you need credit just to get by. On the other end of the economic spectrum, households with net worth above $500,000 carry the second-highest average credit card debt at $8,139.

Why would high-net-worth households carry so much credit card debt? Perhaps for one simple reason – because they can. Wealthier households are more likely to make more purchases and to pay off balances whenever they choose to do so.They may run purchases through their credit cards to get rewards or other perks even whe...

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