Average Credit Card Debt USA & Debt Relief for Military Families

Money worries are hitting American families harder than ever. Groceries cost more, gas prices jump around, and monthly bills keep climbing. Military families also face an extra layer of financial stress that most civilians never have to think about, and credit card debt plays a central role in this financial pressure.

Armed Forces Bank recently examined recent data on how Americans use credit cards and manage debt. Let’s take a closer look at who holds credit cards, how much debt they carry, and why military households meet bigger challenges than most.

How Many Americans Have Credit Cards Today?

Credit cards are everywhere in America, and they are deeply embedded in how we manage our finances. Most adults rely on credit cards for routine transactions, emergency expenses, and larger purchases to pay off gradually. Their convenience and accessibility make them a staple in millions of households.

The numbers show just how common they are. The Federal Reserve found that 8 out of 10 American results (approx. 81%) had at least one credit card in 2024¹—that represents more than 216 million people. But card ownership extends BEYOND having a single card. According to Experian, the average adult carries about 7 cards and regularly uses 4 of them.²

However, having credit cards and managing them effectively are two different challenges. Bankrate reports that nearly half of American cardholders carry a balance they can’t pay off each month.³ Even more worrying, many of these people don’t have a clear plan to get out of debt. This gap reveals a growing concern for millions of households: credit cards have shifted from a helpful financial tool to an ongoing monthly burden.

Why Do Military Families Struggle More with Credit Card Debt?

Credit card debt affects Americans across all demographics. However, service members and their families deal with extra financial pressures that deepen the struggle.

Think about what military life really looks like. You get orders to move across the country (or overseas) every few years. This means your spouse must quit their job and find a new one, and the kids change schools…again. Plus, deployment leads to months of separation and extra childcare costs. All of these circumstances can create financial instability that most civilian families never experience.

Data from American Consumer Credit Counseling⁴ highlights several stark signs of financial strain in military households:

• Income isn’t enough: 7% of military households report that their basic expenses exceed their income. Another 31% said their income barely covers their expenses, leaving no room for savings or emergencies.
• Bills go unpaid: Among junior enlisted military members, 12% had their phone, cable, or internet disconnected because they couldn’t meet routine payments. Even worse, 3% lost water or electricity completely, and 11% had checks bounce. This is a clear sign of cash flow problems.
• Homeowners carry more debt: 51% of military respondents own a home (compared to 57% of civilians). But here’s the catch, an overwhelming 93% of military homeowners carry a mortgage—FAR HIGHER than 64% of civilians. Among those military mortgage holders, 1 in 10 fell behind on payments over the last two years.
• Higher credit card dependence: Military families use credit cards at higher rates than the general population. About 91% of military families have at least one card, and 36% have four or more cards. By comparison, 69% of civilians have at least one card, and only 26% have four or more.

BOTTOM LINE: Military families are more likely to rely on credit, yet they also face more financial instability and stress. This combination can quickly lead to overwhelming debt challenges.

Military vs. Civilian Credit Card Debt: The Numbers

In addition to using credit cards more often, military families also carry higher balances and owe more money.⁴ When comparing debt levels between military and civilian households, the contrast is striking:

• Over $5,000 in Debt: 41% of military households vs. 28% of civilian households.
• Over $10,000 in debt: 27% of military households vs. 16% of civilian households.
• Over $20,000 in debt: 10% of military households vs. 7% of civilian households.

These aren’t small differences. As the data shows, military personnel and their families carry significantly higher balances across every debt level.

Why? For starters, PCS moves are expensive—rental deposits, moving trucks, temporary housing, and travel costs. Plus, during military deployments, families face a difficult tradeoff: pay for extra childcare, or have a parent quit their job to watch the kids (which means less income). Even with steady military pay, these life events push families towards credit cards just to keep things running.

Armed Forces Bank for Military Families: Debt Relief Management

Since 1907, we’ve been supporting military families through every relocation, deployment, and big transition. Armed Forces Bank knows these challenges because we live them too—75% of our team has military connections through their own service, their spouse, or their kids.

If you are dealing with credit card debt, it’s time to break the cycle! Our military bank offers practical steps forward:

• VA Cash-Out Refinance: If you own a home, access up to 100% of your home equity through VA home loans. You can pay off high-interest credit cards and replace them with one mortgage payment at a lower rate.
• Military Debt Consolidation Loan: Combine multiple debts into one fixed-rate loan payment. Our military personal loans simplify budgets and reduce the interest you pay overall.
• Money Calculators Online: Not sure which path to take? Compare options with our financial calculators:
  • Total Debt Calculator: How much do you owe? Understand your balances and monthly repayments for the future.
  • Credit Card Payment Calculator: Learn how to pay off credit card debt and what you need to change for meeting your repayment goals.
  • VA Loan Refi Calculator: Check today’s mortgage rates and decide if a loan refinance is a smart move.
  • Consolidate Debt Calculator: See whether rolling multiple balances into a single loan makes sense for you.