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
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.
Which generation has the most credit card debt? ›
Gen X (Ages 44-59)
According to the Experian study, Gen X is the generation with the most credit card debt out of all generations at over $9,000 — a figure that exceeds the national average of $6,501 by more than 40%.
What is one possible explanation for why millennials have significantly less credit card debt than the other two generations? ›
They seek credit less often
The Federal Reserve notes that student loan balances have reached their highest levels in history. This high debt burden understandably makes millennials hesitant to seek out additional debt.
Which age group has the most credit card debt? ›
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.
How much credit card debt do millennials have? ›
Average credit card debt by generation
| Generation | Average Credit Card Balance March '22 | Average Percent Increase |
|---|
| Baby Boomer | $5,700 | 19% |
| Gen X | $6,400 | 39% |
| Millennial | $4,500 | 49% |
| Gen Z | $2,000 | 65% |
1 more rowMar 1, 2024
Only 10 percent of survey respondents said they have never had debt, which means that 90 percent of millennials have had some sort of non-mortgage debt in their lives.
What types of debt are most common for millennials? ›
Average Millennial debt by type
| Type of debt | Average amount |
|---|
| Mortgage | $295,689 |
| Credit card | $6,274 |
| Total non-mortgage* | $29,702 |
Jan 23, 2024
The largest source of debt for those under 30 is mortgages.
What age group 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.
- Generation Z: $1,963.
- Millennials: $4,322.
- Generation X: $7,155.
- Baby boomers: $6,043.
- Silent generation: $3,177.
Part of this increase is directly related to rising costs of college—both from tuition as well as living expenses. Another source of increased student debt is higher college attendance. Since 2000, undergraduate enrollment has increased by more than 3.5 million students. 95 More people are getting graduate degrees too.
Gen Zers face greater obstacles to financial success
Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.
Does Gen Z spend more than Millennials? ›
Generation Y
For 2022's holiday shopping season, for example, millennials planned to spend an average of over 1,800 U.S. dollars, while Gen Z consumers intended to spend approximately 700 U.S. dollars less per capita.
Why are millennials in credit card debt? ›
The sharp uptick in delinquencies among millennials could be due to federal student loan repayments, which resumed in October. According to a separate report from the New York Fed, nearly 23% of borrowers said they expected to miss a student loan payment.
What generation is in the most debt? ›
Gen Z really do have it worse: Those in their early 20s are earning less and have more debt than millennials did at their age.
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.
Are most millennials in debt? ›
Americans — particularly Millennials and those with lower incomes — are becoming increasingly overextended financially: Credit card and auto loan delinquencies have not only surpassed pre-pandemic levels, they're the highest they've been in more than a decade.
Why are so many millennials in debt? ›
King said millennials' purchasing preferences and the soaring cost of living has led many into "a vicious cycle of taking on more debt." Many were "forced" to rely on credit cards and loans to meet their needs, adding to their "crippling debt pile."
What percentage of millennials are financially independent? ›
45% of young adults say they are completely financially independent from their parents. Among those in their early 30s, that share rises to 67%, compared with 44% of those ages 25 to 29 and 16% of those ages 18 to 24.
How many millennials are financially stable? ›
Credit Karma reports that 43% of Millennials and Gen Z encounter this issue. It was found that 59% of respondents said they felt financially stable, despite the fact that many admitted to feeling behind.
