Advertiser Disclosure

Featured, News

10 Places Where You Can Earn Six Figures and Still Be Broke

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

A household bringing in $100,000 each year might look financially stable on paper. But after factoring in taxes, housing, transportation, and other basic budget line items, a new MagnifyMoney analysis found six-figure families can easily struggle to make ends meet.

In our report, The Best and Worst Cities to Live On Six Figures, we analyzed 381 major metros across the U.S. to see where a family earning $100,000 has the most wiggle room in their budgets.

We based our estimates on a two-earner household with two adults and one child and a gross annual income of $100,000 ($8,333 per month).

Then we created a reasonable budget for monthly expenses and subtracted that total from their after-tax income. We ranked cities from worst (least amount of money left over at the end of each month) to best (the most amount of money left over at the end of each month).

Behind the Budget:

We based most of our budget estimates on publicly available data, but we had to make some assumptions. We assumed one of the household earners carries some student debt, that all families set aside at least 5% in personal savings, and that they enjoy some entertainment throughout the month. That budget includes basic necessities: housing, food, transportation, child care, as well as variable spending on student debt, savings, and entertainment. See our full methodology here.

Key Findings

  • In 11 out of 381 metro areas analyzed, households earning six figures would spend more than 90% of their total take-home pay on basic monthly expenses. The average across all 381 metros is 75% of take-home pay spent on monthly expenses.
  • In 71 out of 381 metro areas analyzed, households earning six figures are spending more than 75% of their budget on basic monthly expenses.
  • Six figures and broke in Washington, D.C.: The worst metro area for a family earning $100,000 includes Washington, D.C. and neighboring cities Arlington and Alexandria, Va. After factoring in monthly expenses, families would be $315 in the red. Stamford, CT, San Jose, CA, San Francisco, CA, and the New York City area round out the 5 worst areas for affordability.
  • California is the ultimate budget killer: The Golden State is home to 9 out of the top 20 worst metros for six-figure families, including San Francisco, San Jose, Santa Cruz, San Diego and Napa. However, Los Angeles area six-figure families are able to save about $500 a month more than San Francisco area families, thanks to lower housing costs.
  • Tennessee dominates: If you’re looking for bang for your buck, it doesn’t get more affordable than Tennessee. The top three best metros for six-figure households are in Tennessee, and a total of five out of the top 10 best metros on the list are from the Volunteer State.
  • Living large in Johnson City, Tenn.: The best metro area for a family earning $100,000 is Johnson City, Tenn., where families only spend 62% of their household budgets on basic expenses. After factoring in monthly expenses, families would have a surplus of over $2,400 each month.
  • The South reigns supreme. The Southeast and Southwest tied as the best region for six-figure families, requiring them to use an average of only 70% of their income on basic expenses.
  • Steer clear of the coasts. In another tie, the Northeast and West ranked worst among the five regions. On average, six-figure households spend 80% of their earnings in these regions.
  • Housing is a budget buster. In 64 out of 381 metros, six-figure households are spending more than one-quarter of their monthly income on housing. In 18 out of 381 metros, six-figure households are spending more than one-third of their budget on housing.
  • Child care isn’t cheap. Child care expenses consume 10% or more of household budgets in 42% all metro areas (161 of 381).

View the complete data here.

The WORST Metros for Six-Figure Households: By the Numbers

1. Washington, D.C./Alexandria/Arlington, VA

It’s shockingly easy for a household earning $100,000 to live beyond their means in this high-cost metro area. To meet the basic costs of these seven expenses, they would spend 5% more than they actually earn after taxes, leaving them $315 in the red. Housing and childcare alone consume a whopping 60% of the household budget of a family living in this metro area.

2. Bridgeport/Stamford/Norwalk, CT

Thanks mostly to lower average child care costs ($959 per month vs. $1,000+ in metros like Washington, D.C., and Boston), families earning $100,000 would be slightly better off — but only slightly. After accounting for expenses, they would still be $139 in the red. Housing has much to do with that. It would consume 43% of the household budget alone.

3. San Jose/Sunnyvale/Santa Clara, CA

It’s a good thing Silicon Valley gigs pay well. A $100,000-earning family in the San Jose/Sunnyvale/Santa Clara metro area would only just manage to make ends meet, according to our findings. They would spend 99% of their total income on basic expenses. Nearly half of their income would go toward housing (46%), more than households in any other metro area analyzed.

4. San Francisco/Oakland/Hayward, CA

Right next door to the no. 3 worst metro on our list, the San Francisco/Oakland/Hayward combo presents another budget-busting challenge for six-figure households. The area gets an edge because it has a slightly more affordable housing situation. A family earning $100,000 would use roughly 43% of their budget on housing. And when all’s said and paid for, families would use 96% of their earnings on basic expenses.

5. New York, NY/Newark/Jersey City, NJ

We land back on the East Coast for the no. 5 worst metro for six-figure households. New Yorkers and the bridge and tunnelers of Newark and Jersey City, N.J., may face exorbitant housing and child care expenses, but they luck out in one key area: transportation. The area ranks the third most affordable for transportation, likely due to the prevalence of public transit. A six-figure household would only use 13% of their budget to get around. That’s nearly half the rate spent on transit in nearby Lexington Park, Md. (23%). Still, cheaper transit options don’t quite make up for the fact that a family earning $100,000 in this area would still have to dedicate a total of 57% of their budget to housing and child care alone. At the end of the month, 96% of their earnings would be dust.

6. California/Lexington Park, MD

High earners in California/Lexington Park, Md., will spend a fair chunk of their earnings on transportation — 23% of their take-home pay. After housing, transportation is the most expensive line item in their budget. Still, they benefit from relatively low housing expenses compared to the other metros in the bottom 10, which gives households here a boost. Higher taxes also leave them with less take-home pay

7. Kahului/Wailuku/Lahaina, HI

Thanks to one of the highest income tax rates in the U.S., high-earning households in Hawaii start off with less take-home pay than their counterparts across the country. A married couple earning $100,000 and filing taxes jointly would get hit with an 8.25% state income tax rate.

Both higher housing costs and transportation expenses make this region in Hawaii, located on the island of Maui, one of the worst places for six-figure households. At the end of each month, they have just $292 left in the household budget. The majority of their take-home pay will go toward housing (38%) and transportation (18%).

8. Honolulu, HI

A family earning $100,000 in Honolulu would fare slightly better than their neighbors on Maui, thanks to lower transportation costs. At the end of each month, they have $302 left in the household budget, versus $292 for households in the Kahului-Wailuku-Lahaina area.

9. Boston-Cambridge-Newton, MA-NH

Relative to their take-home pay, Boston families earning $100,000 spend well over half their household budget on housing and child care — 36% and 17%, respectively.

10. Santa Cruz/Watsonville, CA

Santa Cruz-Watsonville, CA rounds out our rankings. A household earning $100,000 would scrape by at the end of the month with just $329 left.

The BEST Metros for Six-Figure Households: By the Numbers

1. Johnson City, TN

The Southeast is by far the best region to move to if you want to stretch your six-figure income, and Tennessee should be top of your list. Four out of the top 10 best places to earn six figures belong to Tennessee metros.

2. Morristown, TN

A six-figure family living in Morristown, TN would have just over $2,500 left in the bank after paying for essentials and a bit of entertainment. That’s plenty of cash to build up an emergency fund.

3. Cleveland, TN

Tennessee continues to dominate the list, with Cleveland, TN coming in third place among the most affordable places for six-figure households. Families spend just 63% of their post-tax monthly income on essentials, savings and entertainment.

4. Hattiesburg, MS

Hattiesburg, MS takes the no. 4 spot, where  a six-figure family can afford to cover essential expenses, plus savings and entertainment with just 64% of their post-tax income.

5. McAllen-Edinburg-Mission, TX

A family earning $100,000 per year in McAllen, TX would have more than enough to meet their basic needs and then some. Only 14% of their income is spent on transportation ($955 per month) and just 16% goes toward housing ($1,086 per month).

6. Jackson, TN

We’re back to the Volunteer state at No. 6 with Jackson, TN.

7. Chattanooga, TN-GA

Right on the border of Tennessee and Georgia, Chattanooga proves to be a great location of a family bringing in $100,000 per year. Relatively low housing, child care and transportation costs leave plenty of breathing room in the budget.

8. Lafayette-West Lafayette, IN

The midwest makes its first and only showing in the top 10 affordable places list with Lafayette, IN. Just under two-thirds (65%) of a family’s monthly post-tax income would be used on budget essentials like housing, food, child care and transportation.

9. Jackson, MS

We’re back to Mississippi at No. 9 with Jackson, MS making a strong showing among the most affordable places for a six-figure family.

10. Brownsville-Harlingen, TX

Texas rounds out the top 10 affordable places for $100,000 households, with the Brownsville-Harlingen area nabbing the last spot. Families would have over $2,300 left in the bank at month’s end based on our estimates.

A Tale of Two Cities

In the graphic below, see how different life is for a family earning $100,000 in Washington, D.C. vs. Johnson City, TN.

Regional Findings

Click a region to jump to the rankings:



We based our findings on the projected disposable income for a family of three — two adults and one child age 4 years old. We assume the total household gross income is $100,000.

We estimated post-tax income for each metro area.


Based on metro-level estimates from U.S. Census Current Population Survey

Child care

Economic Policy Institute — State level child care costs in the U.S.


Official USDA Food Plans: Cost of Food at Home at Four Levels, U.S. Average, April 2017

Based on a moderate plan for a family of three: One male (age 19 to 50 years), one female (age 19 to 50 years), and child (age 4 to 5 years). Adjustment factor of 5% added.


Based on metro-level data compiled by the U.S. Dept. of Transportation

U.S. Dept. of Housing and Urban Development “Location Affordability Portal”

Student debt payment

State Level Household Debt Statistics 2003-2016, Federal Reserve Bank of New York.

The Student Loan Debt Balance per Capita is distributed equally over 10 years with an interest rate of 4.66%.


We assumed all households would spend 5% of their income on entertainment, per the Bureau of Labor Statistics Consumer Expenditures Survey (CE)

Personal savings

We assumed all households would set aside 5% for personal savings, based on averages from the St. Louis Federal Reserve Bank, personal savings rate.

Data analysis by Priyanka Sarkar, Arpi Shah and Mandi Woodruff.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Mandi Woodruff
Mandi Woodruff |

Mandi Woodruff is a writer at MagnifyMoney. You can email Mandi at [email protected]


Advertiser Disclosure

Featured, Personal Loans, Reviews

Marcus by Goldman Sachs Review: GS Bank Takes on Online Savings, CDs, and Personal Loans

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1990
Total Assets$191.5B
Most Americans probably think of fancy white-collar stock traders on Wall Street when they think of Goldman Sachs, a global investment firm that’s been around since the late 19th century.

In recent years, Goldman made a major pivot, launching a new arm of the company called GS Bank, which would provide internet-only savings accounts to the masses.

They also launched Marcus by Goldman Sachs®, a line of personal loans. Eventually, they decided to rebrand their savings account business, putting it under the Marcus umbrella as well.

Today, through Marcus, you’ll find three product offerings: personal loans, savings accounts, and CDs.

In this article, we’ll take a deep dive into all three products. We’ll tell you what you need to know before opening an account, including what rates they are offering.
Goldman Sachs Bank USA’s Most Popular Accounts


Account Type

Account Name


CD Rates

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC


CD Rates

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC



Goldman Sachs Bank USA High-yield Online Savings Account

on Goldman Sachs Bank USA’s secure website

Member FDIC

Marcus by Goldman Sachs savings account

A very high interest rate and no fees make this one of the best savings accounts out there.


Minimum Balance Amount



  • Minimum opening deposit: None. However, you’ll need to deposit at least $1.00 if you want to earn any interest
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: None

This is a great account for almost anyone. However, before you click that “Learn More” button below, there are a couple of things to know.

No ATMs. First, Marcus by Goldman Sachs doesn’t offer ATM access to your savings account. You’ll either need to deposit or withdraw money by sending in a physical check, setting up direct deposits, or by moving the money to and from your other bank accounts via ACH or wire transfer.

No checking account. Second, Marcus does’t offer a corresponding checking account. That means you can only use this account as an external place to park your cash from your everyday money flow.

Keeping a separate savings account does have its benefits. For example, it’s harder to tempt yourself to withdraw the cash if you’re a chronic over-spender. But, it also means that there might be a delay of a few days if you need to transfer the money out of your Goldman Sachs online savings account and into your other checking account.

How to open a Goldman Sachs online savings account

It’s really easy to open an online savings account with Marcus by Goldman Sachs. You can do it online or over the phone as long as you’re 18 years or older, have a physical street address, and a Social Security Number or Individual Taxpayer Identification Number.

You’ll be required to sign a form which you can do online, or by mail if you’re opening the account over the phone.


on Goldman Sachs Bank USA’s secure website

Member FDIC

magnifying glass

How their online savings account compares

Marcus’ online savings account can easily be described with one word: outstanding.

You’ll get a relatively high interest rate with this account, which is among the best online savings account rates you’ll find today. In fact, these rates are currently over seven times higher than the average savings account interest rate.

Even better, this account won’t charge you any fees for the privilege of keeping your money stashed there. It’s a tall order to find another bank that offers these high interest rates with terms this good.

Marcus by Goldman Sachs CD rates

Sky-high CD rates, but watch out for early withdrawal limitations.



Minimum Deposit Amount

6 months



9 months



12 months



18 months



24 months



3 years



4 years



5 years



6 years



  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty:
    • For CDs under 12 months, 90 days’ worth of interest
    • For CDs of 12 months to 5 years, 270 days’ worth of interest
    • For CDs of 5 years or over, 365 days’ worth of interest

Marcus’ CDs work a little differently from other CDs. Rather than having to set up and fund your account all at once, Goldman Sachs will give you 30 days to fully fund your account.

Once open, your interest will be tallied up and credited to your CD account each month. You can withdraw the interest earned at any time without paying an early withdrawal penalty, but heads up: If you withdraw the interest, your returns will be lower than the stated APY when you opened your account.

If you need to withdraw the money from your CD, you can only do so by pulling out the entire CD balance and paying the required early withdrawal penalty. There is no option for partial withdrawals of your cash.

Finally, once your CD has fully matured, you’ll have a 10-day grace period to withdraw the money, add more funds, and/or switch to a different CD term. If you don’t do anything, Marcus will automatically roll over your CD into another one of the same type, but with the current interest rate of the day.

How to open a Goldman Sachs CD

Marcus has made it super simple to open up a CD. First, you’ll need to be at least 18 years old, and have either a Social Security Number or an Individual Taxpayer Identification Number.

You can open an account easily online, or call them up by phone. You’ll need to sign an account opening form, which you can do online or via a hard-copy mailed form. Then, simply fund your CD account within 30 days, and you’re all set.


on Goldman Sachs Bank USA’s secure website

Member FDIC

magnifying glass

How their CDs compare

The interest rates that Marcus offers on their CDs are top-notch. In fact, a few of their CD terms are among the current contenders for the best CD rates.

If you’re interested in pursuing a CD ladder approach, Marcus is one of our top picks because each of their CD terms offer above-average rates. This means you can rest easy that you’ll get the best rates for your CD ladder without having to complicate things by spreading out all of your CDs among a handful of different banks.

The only downside to these CDs compared with many other banks is that you can’t withdraw a portion of your cash if you need it. It’s either all-in, or all-out. However, once out, you’re still free to open a new CD with the surplus cash, as long as it’s at least the $500 minimum deposit size.

Marcus by Goldman Sachs personal loan

Personal loans offered by Marcus have low APRs, flexible terms, and no fees.



Credit Required


Max Loan Amount

36 to 72 months





Marcus by Goldman Sachs® personal loans can be used for just about anything, from consolidating debt to financing a large home improvement project. They offer some of the best rates available, with APRs as low as 5.99%, and you’ll not only be able to choose between a range of loan terms, but you can also choose the specific day of the month when you want to make your loan payments.

While there are no specific credit requirements to get a loan through Marcus, the company does try to target those that have “prime” credit, which is usually those with a FICO score higher than 660. Even with a less than excellent credit score, you may be able to qualify for a personal loan from Marcus, though, those that have recent, negative marks on their credit report, such as missed payments, will likely be rejected.

Applicants must be over 18 (19 in Alabama and Nebraska, 21 in Mississippi and Puerto Rico) and have a valid U.S. bank account. You are also required to have a Social Security or Individual Tax I.D. Number.

No fees. Marcus charges no extra fees for their personal loans. There is No origination fee associated with getting a loan, but there are also no late fees associated with missing payments. Those missed payments simply accrue more interest and your loan will be extended.

Defer payments. Once you have made on-time payments for a full year, you will have the ability to defer a payment. This means that if an unexpected expense or lost job hurts your budget one month, you can push that payment back by a month without negatively impacting your credit report.

How to apply for a Marcus personal loan

Marcus by Goldman Sachs offers a process that is completely online, allowing you to apply, choose the loan you want, submit all of your documents, and get approved without having to leave home. Here are the steps that you will complete to get a personal loan from Marcus:

  1. Fill out the information that is required in the online application, including your basic personal and financial information, as well as how much you would like to borrow and what you will use the money for.
  2. After a soft pull on your credit, and if you qualify, you will be presented a list of different loan options that may include different rates and terms.
  3. Once you have chosen the loan you want, you will need to provide additional information to verify your identity. You may also be asked for information that can be used to verify your income and you will need to provide your bank account information so that the money can be distributed.
  4. You will receive your funds 1 – 4 business days after your loan has been approved.


on LendingTree’s secure website

Advertiser Disclosure

magnifying glass

How their personal loans compare

Marcus offers low APRs and flexible terms with their personal loans, but their main feature is that they have no fees. If you are looking for a straightforward lending experience with no hidden fees or costs, Marcus will be perfect for you since you won’t even have to worry about late fees if you happen to miss a payment.

While Marcus offers some great perks, you may be able to get a lower rate if you choose to go with another lender, such as LightStream or SoFi. Both of these lenders offer lower APR ranges and they don’t charge origination fees, though, LightStream will do a hard pull on your credit to preapprove you.

LendingClub and Peerform both have lower credit requirements than Marcus, but they also charge origination fees and, being P2P lending platforms, you will need to wait for your loan to be funded and you run the risk that other users might not fund your loan.

Overall review of Marcus by Goldman Sachs‘ products

Marcus has really hit it out of the park with their personal loans, online savings, and CD accounts. Each of these accounts offers some of the best features available on the market, while shrinking the fees down to a minuscule, or even nonexistent, amount. Their website is also slick and easy to use for online-savvy people.

The only thing we can find to complain about with Marcus is that they don’t offer an equally-awesome checking account to accompany their other deposit products. Indeed, it seems like Marcus has turned their former hoity-toity image around: Today, they’re a bank that we’d recommend to anyone, even blue-collar folks.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here


Advertiser Disclosure

Credit Cards, Featured, News

Average U.S. Credit Card Debt in 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Updated – March 26, 2019

Credit card balances are at all-time highs. Rate increases by the Federal Reserve  will mean consumers pay billions more in interest charges.

We’ve updated our statistics on credit card debt in America to illustrate how much consumers are now taking on.

  • Americans paid banks $113 billion in credit card interest in 2018, up 12% from the $101 billion in interest paid in 2017, and up 49% over the last five years, as Fed rate increases have been passed on to consumers. MagnifyMoney analyzed FDIC data through December 2018 for each bank whose deposits are insured by the FDIC.
  • The four Federal Reserve rate increases in 2018 meant most credit card Annual Percentage Rates (APRs) increased a full percentage point more last year. Even without any interest rate increases in 2019, we estimate the increase in interest paid in the coming will continue to grow, putting Americans on track to pay over $122 billion in interest in 2019, an additional $9 billion more than the $113 billion currently being paid annually. Our analysis of the impact of Fed rate hikes found credit card rates are the most sensitive to Fed rate hikes, rising more than twice as fast as mortgage rates.
  • Average APRs on credit card accounts assessed interest are now 16.86%, up nearly 4 percentage points in five years, according to the Federal Reserve.

  • Total revolving credit balances are $1.03 trillion as of January 2019. The figure, reported monthly by the Federal Reserve, is the total amount of revolving credit balances reported by financial institutions, the overwhelming majority of which are credit and retail card balances, according to the Consumer Financial Protection Bureau (CFPB). As of March 2018, non-card-related revolving balances such as overdraft lines of credit were approximately $74 billion, according to our analysis of the FDIC data used by the Federal Reserve to calculate total revolving balances.

  • Americans carry $682 billion in credit card debt that is not paid in full each month. This estimate includes people paying interest, as well as those carrying a balance on a card with a 0% intro rate. We based the estimate on a CFPB study of credit card account data that found 29% of total credit card balances are paid off each month, implying 71% of credit card balances revolve each month. We applied the percentage to the Federal Reserve’s revolving credit balance data less $74 billion in non-credit card revolving debt to reach $682 billion in credit card balances carried over month to month.
  • 43.8% of credit card accounts aren’t paid in full each month, according to the American Bankers Association. Those who don’t pay in full tend to have higher balances, which is why the percentage of balances not paid in full (71%) is higher than the percentage of accounts not paid in full (43.8%).
  • The average credit card balance is $6,348 for individuals with a credit card, according to Experian. This excludes store credit cards, which have an average balance of $1,841. Both figures include the statement balances of individuals who pay their balance in full each month.

Credit card use

  • Number of Americans who actively use credit cards: 176 million as of 2018, according to Transunion.
  • Average number of credit cards per consumer: 3.1, according to Experian. That doesn’t include an average of 2.5 retail credit cards.
  • Number of Americans who carry credit card debt month to month: 70 million.

Credit card debt

The following estimates only include the credit card balances of those who carry credit card debt from month to month — they exclude balances of those who pay in full each month.

  • Total credit card debt in the U.S. (not paid in full each month): $686 billion
  • Average APR: 16.86% (also excludes those with a 0% promotional rate for a balance transfer or purchases)
    • This estimate comes from the Federal Reserve’s monthly reporting of APRs on accounts assessed interest by banks.

Credit card balances

The following figures include the credit card statement balances of all credit card users, including those who pay their bill in full each month.

  • Total credit card balances: $1.03 trillion as of January 2019, an increase of 3.2% from January 2018. This includes credit and retail cards, and a small amount of overdraft line of credit balances.
  • Average credit card balance: $6,358, according to Experian (excludes retail credit cards, which have lower balances. The average consumer has $1,841 in balances on retail cards and we estimate combining all consumers with retail or credit card debt the average is approximately $5,000 per individual). All averages include those who pay their bill in full each month.

Who pays off their credit card bills?

According to the American Bankers Association, in 2018, accounts that are paid in full versus carrying debt month to month comprise the following mix of open credit card accounts:

  • Revolvers (carry debt month to month): 43.8% of credit card accounts
  • Transactors (use card, but pay in full): 30.4% of credit card accounts
  • Dormant (have a card, but don’t use it actively): 25.8% of credit card accounts

Delinquency rates

Credit card debt becomes delinquent when a bank reports a missed payment to the major credit reporting bureaus. Banks typically don’t report a missed payment until a person is at least 30 days late in paying. When a consumer doesn’t pay for at least 90 days, the credit card balance becomes seriously delinquent. Banks are very likely to take a total loss on seriously delinquent balances.

Delinquency rates peaked in 2009 at nearly 7%, but in 2018 they have remained below 2.5%.

Debt burden by income

Those with the highest credit card debts aren’t necessarily the most financially insecure. According to the 2016 Survey of Consumer Finances, the top 10% of income earners who carried credit card debt had nearly twice as much debt as the average.

However, people with lower incomes have more burdensome credit card debt loads. Consumers in the lowest earning quintile had an average credit card debt of $2,100. However, their debt-to-income ratio was 13.9%. On the high end, earners in the top decile had an average of $12,500 in credit card debt. But debt-to-income ratio was just 4.8%.

Income Percentile

Median Income

Average CC Debt

CC Debt: Income Ratio


























Although high-income earners have more manageable credit card debt loads on average, they aren’t taking steps to pay off the debt faster than lower income debt carriers. In fact, high-income earners are as likely to pay the minimum as those with below average incomes. If an economic recession leads to job losses at all wage levels, we could see high levels of credit card debt in default.

Generational differences in credit card use

In 2017, Generation X surpassed the baby boomer generation to have the highest credit card balances. Experian estimates that on average, Generation X has a balance of $7,750 per person, 21.94% more than the national average ($6,354). Boomers carry nearly as much as Generation X with an average balance of $7,550.

At the other end of the spectrum, millennials, who are often characterized as frivolous spenders and are too quick to take on debt, have nearly the lowest credit card balances. Their median balance clocks in at $4,315. The youngest generation, Gen Z, has the smallest average balance of $2,047 per person.

How does your state compare?

Using data from the Federal Reserve Bank of New York Consumer Credit Panel and Equifax, you can compare median credit card balances and credit card delinquency.


Credit Card Debt Per Debtor

Credit Card Debt Per House





















































































New Hampshire



New Jersey



New Mexico



New York



North Carolina



North Dakota















Rhode Island



South Carolina



South Dakota





















West Virginia













Gen X


Gen Z











































Dist. of Columbia
























































































































North Carolina






North Dakota












New Hampshire






New Jersey






New Mexico












New York






























Rhode Island






South Carolina






South Dakota
















































West Virginia












Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

MagnifyMoney |

Have a question to ask or a story to share? Contact the MagnifyMoney team at [email protected]