Understanding Credit Card Debt Across Generations: Who Owes the Most?

According to the latest Wealth Watch survey by New York Life, all generations have managed to decrease their credit card debt since the end of 2023. However, one surprising finding is that baby boomers currently carry the most credit card debt of any generation, with an average balance of $7,808.93.

Gen Xers are not far behind, owing an average of $7,530.31, while millennials have an average balance of $5,370.06. Gen Zers have the lowest average balance at $1,707.52, likely due to lower incomes and credit limits.

Credit card debt can be particularly harmful for baby boomers, many of whom are already retired or nearing retirement. One tactic they can use to get out of credit card debt is tapping into home equity. With a median $250,000 in home equity for Americans aged 65 and over, consolidating credit card debt into a home equity loan could lower interest rates and make payments more manageable.

For individuals of any age, a personal loan is another option for consolidating credit card debt. With fixed interest rates and predictable monthly payments, a personal loan can help make it easier to manage and pay off debt.

Carrying credit card debt is a burden at any age, so it’s important to take steps to shed debt as soon as possible and make it less expensive in the process. By exploring options like home equity loans and personal loans, individuals can work towards financial freedom and security.