What age group has the most credit card debt?

Average American Credit Card Debt by Age
Generation X—ages 41-56—has the highest average credit card debt at $7,070. Gen Z and Millennials saw their average credit card debt increase from 2020 to 2021—by 11.6% and 5.2%, respectively—while averages dropped for those 41 and older.


What age group tends to have the most credit card debt?

Average Credit Card Debt by Age

Data showed that people 35 or younger have the lowest average credit card debt at $3,700. Around 48% of individuals in this age group carry debt. Adults 75 or older have the highest average credit card debt at $8,100, but just 28% of people in this age group have debt.

Who is most affected by credit card debt?

Credit card debt levels relative to income are highest among low-income families. Low-income families owed the equivalent of 9.5 percent of their income on credit cards, while middle-class families owed 5.2 percent, and high-income families owed 2.3 percent.


What generation has the highest credit card debt?

TABLE OF CONTENTS
  • Key findings.
  • From X to Z: Gen Xers have highest average credit card balances, while Gen Zers have lowest.
  • Gen Xers, baby boomers have highest average number of credit cards.
  • Baby boomers have lowest average credit utilization rates.


At what age should I be debt-free?

A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.


More than 50% of Americans carry credit card debt



How much debt is a normal person in?

How much debt does the average American have? The same 2021 study from Experian shows that the average American has a consumer debt balance of $96,371, up 3.9% from 2020. Mortgages, home equity lines of credit and student loan balances are the biggest contributors to American debt today.

What generation has the lowest credit card debt?

Gen X and Gen Z have the highest and lowest credit card debt, respectively. Here's how to pay it off. Consumers of all ages carry credit cards, but some generations have larger outstanding balances than others.

Do most millennials have credit card debt?

Most Millennials Have Credit Card Debt

The most common type of debt held by this generation is credit card debt, with more than two-thirds of millennials owing money to a credit card company.


How smart is it to pay off credit card debt?

Paying off credit card debt as quickly as possible will save you money in interest but also help keep your credit in good shape.

What is considered a lot of debt?

Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.

What percentage of people have zero credit card debt?

Finally, 15 percent of households have no credit card debt but zero emergency savings.


Why do millennials have so much debt?

In addition, millennials have been more reticent to use credit in making large purchases, such as houses and cars. Of course, as a consequence of their lower credit card usage, many millennials may not have built a sufficient credit history to qualify for large installment loans to begin with.

Do younger or older people have more debt?

In fact, younger millennials have a total average debt balance that's less than half that of their older peers, according to Experian data. Younger millennials carry a total average debt balance of $41,330, compared with the $104,064 carried by older members of the generation.

Do normal people have credit card debt?

Most Americans have some credit card debt. A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt.


How much credit card debt does a 30 year old have?

Too much credit card debt can also result in a lower credit score. On average, the average person in their 30s has a credit card balance of $6,568.

What is the average credit card debt for a 40 year old?

According to The Motley Fool, 2021 Personal Capital data shows that its members have an average credit card balance of $6,100 and that those in their forties have the highest average balance: $9,379.

Will millennials ever get out of debt?

Today, only about one-fourth of millennials (28%) are debt-free. Of those, about 1 in 3 (34%) have never had debt, while 1 in 4 (25%) have paid off their debts within the past year. Paying off debt may strengthen millennials' commitment to financial freedom.


Why don t millennials use credit cards?

Many Millennials Are Getting Rejected for Credit Cards

Millennials also have the lowest average credit score compared to other generations--28.1% of them have scores below 579. They also have the shortest credit history, which makes sense given their age. These two factors make it harder for them to get a credit card.

What is the largest source of debt for the average Millennial?

Credit card debt comes out on top

The survey said that the biggest culprit of millennials' debt is credit card spending, with 67% of respondents carrying a balance that averages $5,349.

What is a good age to have your house paid off?

But if you want to live a life of financial freedom, then it's important to shed all of your debt, says Shark Tank personality Kevin O'Leary. In fact, O'Leary insists that it's a good idea to be debt-free by age 45 -- and that includes having your mortgage paid off.


Is it better to be debt free or have savings?

Our recommendation is to prioritize paying down significant debt while making small contributions to your savings. Once you've paid off your debt, you can then more aggressively build your savings by contributing the full amount you were previously paying each month toward debt.

Who is the highest person in debt?

He is ... the most indebted man in the world. Jérôme Kerviel is learning one of life's harsher lessons: It stinks to be $6.3 billion in debt.