FAQs
The news: Gen Z's credit card debt is growing faster than that of any other generation, according to data from Credit Karma. Gen Z credit card balances averaged $3,328 in Q2, a 4.23% increase from $3,193 in Q1. Despite this growth, Gen Z still holds the least credit card debt of any generation.
Which generation group has the fastest growing credit card debt? ›
Although Gen Xers hold the most credit card debt by generation, millennials' average balances increased the most, jumping by a little over 15% in the last quarter of 2023, compared with the last quarter of 2022. Gen Zers aren't too far behind with their balances increasing by around 14%.
What is the credit card debt for Gen Z? ›
Since the Fed started increasing rates in March 2022, average credit card balances for Gen Z increased 62%, rising from $2,000 to $3,300. Likewise, average credit card debt for millennials increased 50%, jumping from $4,500 to $6,700.
Does Gen Z have a serious debt problem? ›
The generation, which comprises people born between the mid-1990s and the early 2010s, was the cohort most behind on their debt payments (for more than 90 days) and they are more delinquent on their debt bills than they've been in three years, according to the New York Fed.
What generation has the highest total debt? ›
Credit Karma members closest to midlife carry the most average total debt. Generation X averages $61,036 in debt, followed by baby boomer members, who have an average total debt of $52,401.
Is Gen Z chalking up credit card debt? ›
The news: Gen Z's credit card debt is growing faster than that of any other generation, according to data from Credit Karma. Gen Z credit card balances averaged $3,328 in Q2, a 4.23% increase from $3,193 in Q1. Despite this growth, Gen Z still holds the least credit card debt of any generation.
Does Gen Z like credit cards? ›
According to the study, 69 percent of Gen Zers report using a debit card at least once a week, while only 39 percent frequently use credit cards (compared with 51 percent of other U.S. adults).
What is Gen Z's average debt mostly comprised of? ›
Gen Z takes the top spot with 46% of their debt coming from auto loans. Student loans make up a higher percentage of millennials' debt balances than any other generation, at 36%.
Is Gen Z financially stable? ›
Most Gen Zers prioritize financial security over climbing the corporate ladder, new research shows. Less than one-third of Gen Zers said they are in good financial condition. Companies that offer stable benefits are more likely to attract and retain Gen Z talent.
What credit card feature is most popular for Gen Z? ›
Baby boomers split with Gen Z, millennials on most important credit card features
| What is the top feature you look for in a credit card? | Gen Z | Gen X |
|---|
| No annual fees | 29% | 30% |
| Low interest rate | 30% | 31% |
| Rewards program | 11% | 17% |
| High credit limit | 15% | 10% |
4 more rowsApr 2, 2024
Of course, some of the increase can be attributed to population growth and more people using credit cards instead of cash. But rising interest rates, inflation, and the return of federal student loan payments are also to blame.
Is Gen Z struggling? ›
Gen Z Struggles With Mental Health
According to McKinsey, over half (55%) of Gen Zers report having either been diagnosed or receiving treatment for a mental health condition, compared to 31% of people aged 55 to 64, who have had decades longer to seek and get treatment.
What are the bad side of Gen Z? ›
Generation Z can experience negative emotions such as anxiety, strangeness, and panic when absent from one's device or experience feelings of being afraid due to not knowing what everyone else is doing (Vincent, 2006).
Are Gen Z more financially literate? ›
According to the US National Association of Plan Advisors (NAPA), Gen Z has the lowest level of financial literacy, with only 28% of questions being answered correctly on average.
Which age range carries the biggest debt? ›
Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.
Which demographic has the most credit card debt? ›
Credit Card Debt Demographics
Among ethnicities, White, non-Hispanic populations had the highest credit card debt. Debt owed by this demographic totaled $2,500 more than Black, non-Hispanic populations. Hispanic populations owed an average of $4,150, the least credit card debt among all ethnicities.
What generation uses credit cards the most? ›
Millennials stand out as the generation most likely to embrace credit cards than other generations. 65% of this generation report they have a credit card, the most of all generations of consumers. Millennials are also most likely to have a card affiliated with an airline (14%) and retailer cards (25%).
What age group has the most average debt? ›
Generation X Debt
Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.
What group is most likely to fall into credit card debt? ›
Credit card debt by household income
While having a credit card is less common for lower-income consumers, they are more likely to be carrying card balances. And about 50 percent of those with annual incomes of $25,000 to $99,000 carried a balance on their credit cards at least once in the previous 12 months.
