2 in 3 Millennials Have Credit Card Debt, More Than Double the Number Who Have Student Loans
Credit card debt weighs down more millennials' finances than student loans, according to a newreportfrom financial services online marketplace, CompareCards.com, which found only 13 percent of millennial credit cardholders are completely debt-free.
Across all generations, nearly one in four cardholders expect to die in debt, including those in wealthier households.
CompareCards surveyed more than 1,000 cardholders about their debts, from credit cards and auto loans to mortgages and student loans. Cardholders revealed their wide-ranging battles with debt, and many indicated they aren't optimistic about their abilityto pay it off.
Key findings
- Just 13% of millennial credit cardholders are debt-free,slightly higher than the 11% of Gen Xers who said the same, but far less than the 29% of baby boomers without any debt.
- 67% of millennials report having credit card debt, while just 36% face student loan debt.
- 25% of women think they'll never be debt-free, compared to 19% of men.
- 16% of those who expect to die in debt have a household income surpassing$100,000.
- Only 7% of cardholders with kids under 18 are debt-free,compared to more than 20% of those with older children or no kids at all.
- 7 in 10 of those in credit card debt across all age groups have at least one other type of debt as well.
- On average, millennials with debt expect to be debt-free at age 49, and they took on their oldest existing debt at 24.
- Gen Xers who owe expect to be debt-free at age 67, and they took on their oldest existing debt at 30.
- Baby boomers with debt expect to be debt-free at age 81, and they took on their oldest existing debt at age 49.
"Most conversations around millennials and debt center around the nation's trillion-dollar student loan crisis, but the truth is, credit card debt is far more prevalent. With many millennials juggling student loan or car payments on top of credit cardbills, it's no wonder some think they'll never be debt-free," saidMatt Schulz, CompareCards Chief Industry Analyst.
“Across all generations, it's shocking that nearly a quarter expect to die in debt. Viewing debt as a financial death sentence only makes matters worse, and those in debt should commit to action wherever and whenever possible. An extra$10or$20towardmonthly debt payments can really make a difference in the long run, especially when coupled with reduced spending or a side gig," Schulz said.
If you’re drowning in credit card debt, talk to your local credit union. InTouch Credit Union may be able to help you consolidate that high-interest credit card debt into a low-interest personal loan.
FAQs
Baby boomers and Generation X had the highest credit card balances of over $7,500 in 2022. Millennials take second place with around $6,500 in credit card debt. Cardholders 75 and over had the lowest debt, at just under $4,000. Among ethnicities, White, non-Hispanic populations had the highest credit card debt.
What percentage of millennials have some type of debt? ›
67% of millennials report having credit card debt, while just 36% face student loan debt.
Which age group tends to have the most credit card debt? ›
Analysis of the debt share in the U.S. shows that people aged 40-49 hold the largest amount of debt at $4.21 trillion in total. People aged 50-59 have the most credit card debt in total at $0.21 trillion, and people aged 30-39 have the most student loan debt at $0.5 trillion.
How much debt does an average 30 year old have? ›
Average debt by age
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
| Silent Generation (78+) | $38,600 | $39,345 |
1 more row6 days ago
Americans collectively owe over $1 trillion in credit card debt. But one generation carries the most, on average: Gen X. The average credit card balance for Gen Xers, defined at those between the ages of 43 and 58, rose to $9,123 in the third quarter of 2023, according to Experian's latest available data.
Why do millennials have less credit card debt? ›
They seek credit less often
Millennials are considerably less attracted to debt than the preceding generations. For instance, Federal Reserve data1 indicates that the percentage of Americans under 35 with credit card debt has dropped to its lowest level since 1989.
What is the average salary for a millennial? ›
Based on the most recent U.S. Census Bureau data, the average salary for a millennial is $71,566 a year, or $1,376 a week.
Are millennials struggling financially? ›
Close to half of respondents report feeling hopeless about their financial situation. Many factors are at play, including income, debt, dwindling savings, and poor financial choices. Close to 75% of millennial women and 70% of all those surveyed say they struggle to make ends meet with their current salary.
Is the average millennial thousands in debt? ›
Meanwhile, millennials have seen the largest increase in debt in the last five years: In 2015, the average millennial had about $49,722 in debt, and by 2019 they carried an average of $78,396 in total debt — an increase of 58%.
What generation holds the most debt? ›
Survey: Gen X Holds the Most Credit Card Debt, on Average; Gen Z Holds the Least. Americans collectively owe over $1 trillion in credit card debt, with members of Generation X, on average, owing the most and Gen Zers owing the least, CNBC.com Make It reported.
This card network operates in more than 210 countries and territories worldwide, making Mastercard credit cards some of the most widely accepted and used. Visa. Visa credit cards are accepted in more than 200 countries and territories around the world, with more than 4.2 billion Visa cards currently in use worldwide.
What is the average credit score in America? ›
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
How much debt does the average 70 year old have? ›
Average total debt by age and generation
| Generation | Ages | Credit Karma members' average total debt |
|---|
| Millennial (born 1981–1996) | 27–42 | $48,611 |
| Gen X (born 1965–1980) | 43–58 | $61,036 |
| Baby boomer (born 1946–1964) | 59–77 | $52,401 |
| Silent (born 1928–1945) | 78–95 | $41,077 |
1 more rowApr 29, 2024
But with nearly two-thirds of retirement-age Americans having paid off their mortgages, it means that the average age they have gotten rid of that debt is likely in their early 60s. Stats from 538.com, for example, suggest the age is around 63.
What is a good age to be debt free? ›
“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
What race uses credit cards the most? ›
Credit Card Usage by Key Demographics
Conversely, only 57% of households with less than $25,000 in annual income hold a credit card. Asian Americans (92%) and Caucasian Americans (87%) were the most likely demographic groups to hold credit cards.
What demographic has the worst credit score? ›
Credit scores by race and ethnicity
Majority Black, Hispanic and Native American communities have at least 1.5 times the rates of subprime credit scores, debt in collections and high-cost non-bank borrowing (such as payday loans) compared to majority-white communities, according to data from the Urban Institute.
Which gender holds the most credit card debt? ›
Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
Who is the most in debt population? ›
Countries with the highest household debt
- Denmark. Denmark had the highest household-debt-to-income ratio of all the nations we looked at, with a reported debt of 252.18%. ...
- Norway. Norway was only slightly behind Denmark on our list, with a debt-to-income ratio of 246.79%. ...
- Switzerland.
