Average American credit card debt refers to the typical amount of debt carried by individuals in the United States. It is calculated by dividing the total credit card debt outstanding by the number of people with credit cards.
Tracking average American credit card debt is important for several reasons. First, it provides insights into the financial well-being of consumers. High levels of credit card debt can indicate financial stress and difficulty managing expenses. Second, it helps policymakers understand the overall health of the economy. High consumer debt levels can contribute to economic downturns if consumers are unable to repay their debts.