Credit card debt is among the most pressing financial concerns for people of all ages. In recent years, the amount of credit card debt held by individuals across the country has risen steadily, regardless of age. However, certain age groups are struggling more than others. Let’s peek into the different generations and their struggle with credit card debt.
Who Has It Worst?
The first generation on our list is the baby boomers born between 1946 and 1964. This group is more likely to have credit card debt than any other age group, with an average of $6,000 to $9,000 in credit card debt per person. One reason for this is that many baby boomers did not have access to credit cards until the late 1970s or early 1980s. As a result, they have been using credit cards for relatively shorter periods and have not had enough time to build up a strong credit history. Additionally, many may have experienced financial setbacks due to medical expenses, job loss, or other unexpected events.
Next are the Gen Xers, those born between 1965 and 1980. This group also carries an average of $6,000 to $9,000 in credit card debt per person. One reason is that they are in their peak earning years and are more likely to take on additional expenses, such as mortgages or car loans. Additionally, many Gen Xers may have accumulated debt from college loans or credit card use in their twenties.
The millennials between 1981 and 1996 are the next generation on our list. They have an average credit card debt of $5,500 to $6,000 per person. This generation is known for being more cautious with credit card use and concerned about education debt. But, they also experienced a lot of financial strain due to the economic downturn in the late 2000s, which may have put them in debt.
Lastly, we have the Gen Zers, those born between 1997 and 2012. They have an average credit card debt of $2,000 to $3,000 per person. This group is relatively new to credit card use, as most are still in school, making them more likely to rely on their parents for support.
The Rise Of Credit Card Debt In Millennial Populations
One of the primary reasons millennials struggle with credit card debt is that they live in a time with a high cost of living, and wages need to catch up. This means millennials are more likely to turn to credit cards and other forms of borrowing to make ends meet. Additionally, millennials are more likely to carry student loan debt than past generations, making it harder to manage everyday expenses like rent and groceries.
The Role of Social Media and Peer Pressure
Another factor contributing to the high levels of credit card debt among millennials is the influence of social media and other online platforms. In today’s world, young people are constantly bombarded with images of perfect lifestyles and experiences, whether coveted clothing options, fancy dining, or luxurious vacations. These images foster a sense of FOMO (fear of missing out) in many people, leading to overspending on credit cards to keep up with others’ lifestyles.
Final Thought
While credit card debt is a challenge for people of all ages, millennials are often hit the hardest by this problem. Many factors contribute to this trend, from social media influence to a lack of adequate wages to higher-than-ever student loan debt. However, the good news is, there are ways to start taking control of your credit card debt, no matter your age or situation. Through budgeting, prioritizing spending, and enlisting the help of professionals when necessary, it is possible to start to make progress toward a debt-free future.