How much credit card debt do Americans have? It varies according to generation

Generation X has the highest amount of credit card debt among Americans. See where other generations fall and who is less deserving.

If you're struggling to pay off credit card debt, you're far from alone: ​​One in three Americans has more credit card debt than their savings in 2023 and 2024. Bankrate survey shows that.

Although inflation is calming and the job market remains strong, Americans are still having trouble keeping up with credit card payments. At the end of 2023, Americans had more than $1 trillion in credit card balances, a record high, according to a World Bank report. Latest data from the Federal Reserve Bank of New York.

“Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, an economic research adviser at the Federal Reserve Bank of New York. In a press release Advance this month. “This indicates increasing financial pressures, especially among younger and lower-income families.”

Which is higher? Your credit card debt or emergency savings?

About 36% of U.S. adults report that they have more credit card debt than emergency funds saving accounta recent study conducted by Bankrate found.

The amount of credit card debt versus emergency savings varies by generation. Millennials and Gen Xers are more likely than other generations to have more credit card debt than emergency savings available to them.

“Recognizing that the cost of carrying debt has increased dramatically in the past two years and that the level of emergency savings is insufficient, more Americans are focusing on paying off debt and building up emergency savings simultaneously, rather than focusing on one at the expense of the other.” Bankrate chief financial analyst Greg McBride said in a statement.

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Regardless of financial situation, 36% of Americans said they prioritize paying off debt and increasing emergency savings, according to the survey.

Tips to reduce credit card debt: Only half of Americans believe they can pay their bill

What is the average credit card debt?

The average American household owes $7,951 in credit card debt annually, according to 2022 data from the Federal Reserve Bank of New York and the U.S. Census Bureau.

How much credit card debt has increased?

Credit card balances rose by about $50 billion, or 4.6%, in the fourth quarter of 2023.

Credit card delinquencies, which is the amount of time cardholders are late on payments, have also increased.

Researchers from the Federal Reserve Bank of New York said the US economy is generally stable, but there are areas Americans are overextended. High prices for Food, gas and housing Contributing to credit card debt.

See drawing: How Americans' total credit card debt reached a record high

Credit card debt by generation

Generation X has the largest credit card balances of all generations. Although each generation saw an increase in debt between 2021 and 2022, the silent generation added the least amount, According to Bankrate.

Here's the average credit card debt owed per generation, according to Bankrate:

  • Generation X has an average credit card debt of $8,134
  • The average credit card debt for baby boomers is $6,245
  • Millennials have an average of $5,649 in credit card debt
  • The Silent Generation (born 1928-1946) has an average of $3,316 in credit card debt.
  • Gen Z's average credit card debt is $2,854
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George Petras contributed to this report

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