Generation X has the most credit card debt among Americans. See where the other generations fall and who owes the least.
If you're struggling to pay off credit card debt, you're far from alone: One in three Americans will have more credit card debt than savings in both 2023 and 2024, a Bankrate survey shows.
Although inflation is cooling and the job market remains strong, Americans are still struggling to keep up with credit card payments. According to the latest data from the Federal Reserve Bank of New York, Americans had credit card balances of over $1 trillion at the end of 2023, a record high.
“The transition from credit card and auto loans to crime is still above pre-pandemic levels,” Wilbert van der Klaauw, economic research adviser at the New York Fed, said in a press release earlier this month. “This suggests increased financial stress, particularly among younger and lower-income households.”
What is higher? Your credit card debt or emergency savings?
About 36% of U.S. adults reported having more credit card debt than money in an emergency savings account, a recent Bankrate survey found.
The amount of credit card debt compared to emergency savings varies by generation. Millennials and Generation X are more likely than other generations to have more credit card debt than emergency savings.
“Considering that the cost of carrying debt has increased significantly over the past two years and emergency savings levels are inadequate, more Americans are focusing on simultaneously paying down debt and increasing emergency savings rather than that one to the exclusion of the other.” Greg McBride, chief financial analyst at Bankrate, said in a statement.
Regardless of financial situation, 36% of Americans said they are prioritizing both paying off debt and increasing savings for emergencies, according to the survey.
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How much is the average credit card debt?
According to 2022 data from the Federal Reserve Bank of New York and the U.S. Census Bureau, the average American household has $7,951 in credit card debt annually.
How much has credit card debt increased?
Credit card balances increased by approximately $50 billion, or 4.6%, in the fourth quarter of 2023.
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The U.S. economy is stable overall, New York Fed researchers said, but there are areas where Americans are overwhelmed. Higher prices for food, gas and housing contribute to credit card debt.
See grafic: How Americans' Total Credit Card Debt Reached a Record High
Credit card debt by generation
Generation X has the highest credit card balances of any generation. Although every generation saw an increase in debt between 2021 and 2022, the silent generation added the least amount, according to Bankrate.
Here is the average credit card debt of each generation, according to Bankrate:
- Generation X has an average of $8,134 in credit card debt
- Baby boomers have an average of $6,245 in credit card debt
- Millennials have an average of $5,649 in credit card debt
- The Silent Generation (born between 1928 and 1946) has an average of $3,316 in credit card debt
- Generation Z has an average of $2,854 in credit card debt
George Petras contributed to this reporting