NEW YORK—Some of the youngest card holders—those who fall in Gen Z--are racking up credit card debt at a pace faster than any other generation, a new study reveals.
The report from Credit Karma collected data on Jan. 6 from 78.2 million Credit Karma users ranging from those in the Silent Generation to Gen Z, Business Insider reported.
Gen Z Americans—those born between 1997 and 2013--racked up $2,781 worth of average credit card debt in the fourth quarter of 2022. Although Gen Z's credit card debt was the lowest among all five generations tracked, it grew at the fastest pace of around 6% in comparison to the three months through May 2022, the data show.
According to the Credit Karma analysis, they also saw the highest pace of increase in average total debt as they racked up $16,283 in dues over the last quarter of 2022 — a 3% increase over the three months to May 2022.
Millennials Add Nearly $6k in Debt
“Millennials, meanwhile, had average credit card debt of $5,898 in the last quarter of 2022. That's up around 5% from March to May 2022. Gen X — those born between 1965 and 1980 — owed $8,266 worth in credit card debt, but this was just under a 4 percentage point increase over the same period,” Business Insider stated in its analysis.
“While Gen Z has a small amount of total debt among all generations, they are the only generation to see an increase in past-due accounts,” the Business Insider analysis continued. "This includes credit card, mortgage, student loans, medical loans, auto lease, or auto loan accounts that are overdue by more than 30 days.”
Suffering From FOMO? We Have The Help You Need!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com