According to February data from credit management company Credit Karma, Gen X (people between the ages of 43 and 58) collectively has the most credit card debt at an average of $8,266 per Gen Xer. But no matter your age, if you're buried in bills, there are things you can do to help dig your way out faster.
Those between the ages of 40 and 49 hold an average of about $7,600 in credit card debt — the highest of any age bracket, per TransUnion data provided to CNBC Make It.
According to data on 78.2 million Credit Karma members, members of Generation X (ages 43 to 58) carry the highest average total debt — $61,036.
While Gen Z has the fastest-growing debt load, Gen X has the largest average debt balance at $167,493, followed by millennials' $124,295, LendingTree said. “You can't run up big debts if you can't get access to credit,” Schulz says.
Gen Z Has an Average Credit Card Balance of $2,854
As of Q3 2022, Generation Z carried an average credit card balance of $2,854—much lower than the $5,910 average credit card debt among all consumers.
According to a study from Credit Karma, Generation Z, which is defined as people born between 1997 and 2012, accumulated a higher percentage of debt at the end of 2022. The study shows that Generation Z had, on average, $15,796 of debt between March and May of 2022.
17.3% of Gen Zers are authorized on at least one credit card account. Meanwhile, 3.7% of Gen Zers are authorized on multiple cards. More than 4 in 10 (40.6%) Gen Zers have opened a new credit card in the past six months. 98.3% of Gen Zers pay their credit card bills on time every month.
Millennials and debt
In fact, the high level of debt among millennials is arguably partly responsible for their added precaution when it comes to credit cards. Student debt is a big problem among members of generation Y, as university fees have gone up steadily over the last few decades.
And a survey of 600 individuals found that Gen Z is the most unhappy generation at work. Just 59% of Gen Z workers are happy, compared to 69% for Baby Boomers and 76% for Millennials and Gen X. In addition, 9% of Baby Boomers are unhappy at work, compared to 26% of Gen Z and 13% for Gen X and Millennials.
It is estimated that 70% of wealthy families will lose their wealth by the second generation and 90% will lose it by the third. There are a variety of reasons why this happens: Generations are taught not to talk about money. The prior generations worry that the next generation will become lazy and entitled.
Baby Boomers Hold Half of the Nation's $140 Trillion in Wealth. A chart that shows a breakdown of the 140 trillion dollars in total wealth in the U.S. held by four generations in which the baby boomers who were born in 1946 to 64 have the most, with 78.3 trillion dollars in assets. Pensions $16.1 tril.
“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.
Data showed that people 35 or younger have the lowest average credit card debt at $3,700.
The median credit card debt per American family is $2,700, while the average is $6,270. Consumers' average credit card balance is $5,910 (up from $5,315 in 2020). Overall, Americans owe $986 billion across nearly 573 million credit card accounts. Below, you'll find some of the most prominent trends that emerged.
People between the ages of 16 and 24, part of the group typically referred to as Generation Z, are the loneliest generation, according to new research.
New studies suggest Generation Z is now the loneliest generation, and experts say we're in the middle of a loneliness epidemic. Our generation is statistically experiencing more feelings of isolation, getting married later and having less sex.
Members of Generation Z report higher rates of depression and a number of other mental health conditions than do generations before them. At the same time, they are more likely than previous generations to report these problems, positioning those who seek help in a place to receive it.
The Role of Credit Cards in Wealthy Americans' Lives
Credit cards give people a convenient way to spend, and that includes the wealthy. They often use credit cards to make large purchases or to pay for travel and entertainment expenses.
While millionaires are less likely to have a cash back card than the average American, they're more likely to have every other major type of credit card, including travel rewards cards, balance transfer cards, gas and grocery cards, and sign-up bonus cards.
Gen Z adults are not credit-shy
However, as of early 2023, Gen Z adults' use of credit cards is on par with their Gen Xer parents: 63% of each generation own at least one credit card, and the majority of credit card owners report that they have more than one.
The way Gen Zers access financial services differs from older generations. They have a high level of distrust of traditional financial providers, and place greater faith in internet platforms. They are more likely to attain services from a neobank or a digital lender, and find it easy and convenient to do so.
That debt-wary attitude is one of a number factors behind Gen Z's much-hyped relationship with credit cards, but industry analysts say this generation is gravitating toward them as they mature. Gen Zers themselves say they're not afraid of or uninterested in credit cards – they're just mindful about how they use them.
Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the U.S.)
Gen Z workers, aged between 18 and 26, make up about 35% of those wanting to quit, while millennials (aged 27 to 42) are another 31%.
Gen Z (42%) is about twice as likely as Americans over 25 (23%) to battle depression and feelings of hopelessness.