Global Credit Card Debt Exceeds $1 Trillion, With U.S. Holding Highest Median Debt Per Person

Credit card debt levels have been rising globally, exceeding $1 trillion in 2020, driven by factors like technological advancements making credit more accessible, incentives offered for credit card use, economic impacts of the pandemic, etc.

Top global payment processing companies like Visa, Mastercard, and PayPal generate significant revenue from credit card transactions and are impacted by fluctuations in consumer spending and debt levels.

The 20 countries with the highest median credit card debt per person include European nations like Ireland, France, the UK, Germany, Netherlands, Denmark, and Finland as well as countries like Canada, China, South Korea, Hong Kong, Singapore, and the US.

The US has the highest median credit card debt globally at $6,194, followed by Australia ($4,184), Switzerland ($3,251), Sweden ($2,840), and New Zealand ($2,493).

Factors driving credit card debt vary by country but include aspects like high costs of living, economic uncertainty, materialistic cultural values, aggressive marketing by financial institutions, and lack of financial literacy.