See Where Your Age Group Stands

Average Credit Card Debt by Generation

Credit card debt in the U.S. varies by age group. According to research from Experian, the average 2025 balance is as follows for each generation:

As you can see, credit card debt is lowest among the youngest and eldest segments of the population. This shouldn’t come as a surprise. A chunk of Generation Z, which covers people between the ages of 13 and 28, is too young for credit cards. And those old enough will likely only qualify for smaller credit limits because they’re new to borrowing. 

Lower balances among the Silent Generation aren’t unexpected, either. Many people age 80 or older were raised to live within their means and to avoid high-interest debt. Also, by that stage of life, they tend to have amassed some wealth and have fewer major expenses. In addition, many older adults want to avoid burdening their offspring with inherited debt.

At the other extreme of card debt, we have Generation X. People in their 40s and 50s tend to have bigger expenses, including mortgages and children they’re supporting. They may also be caring for aging parents. Their incomes are typically higher than those of younger generations, and they have a long enough credit history to qualify for larger credit limits.

How Credit Card Debt Has Changed Over Time

Another interesting pattern from Experian’s research is how credit card balances have ballooned across most age groups since 2021.

Other than a relatively brief decline starting in 2019, likely caused by COVID-related impacts such as relief payments and reduced consumer spending, Gen X and millennial credit card debt steadily increased after 2012, then spiked after 2021. This surge in balances is likely due to rising inflation.

The cost of living has exploded in the past few years, squeezing incomes and increasing the need for credit to meet everyday expenses. At the same time, borrowing costs rose, too, making this debt more expensive to maintain.

How to Avoid or Reduce Credit Card Debt at Any Age

Having credit cards isn’t necessarily unwise. The secret is to diligently pay off balances before their typically steep interest is applied. If you’re disciplined in treating credit cards as short-term loans that need to be repaid by the end of every month, you’ll avoid debt and interest expenses.

If you’re beyond that stage and have already racked up considerable credit card debt, there are ways to get your finances back on track. Start by writing down every credit card balance you have, and the minimum payments for each. Once you’ve established what you’re up against, you can work out how best to tackle the problem.

Unless you have loads of extra money sitting around, the next step is to find ways to free up funds. Determine where you could cut expenses and how you could potentially increase income. The more you can realistically contribute without overstretching yourself, the closer you are to becoming debt-free.

It also generally helps to adopt a consistent approach and stick to it. There are various techniques to pay off credit cards. The best option for you depends on your personal circumstances and what’s available. Popular strategies include:

• Debt consolidation – This strategy involves getting a new credit card and then transferring all of your other credit card balances onto it so that all of your debt is in one place. Preferably, the new card will offer a lower interest rate or a 0% interest introductory period. 
• Snowball and avalanche methods – If you have multiple credit cards, a popular approach is to focus on paying one of them off at a time while making minimum payments on the others. With the snowball method, you prioritize paying off the smallest credit card balance first, racking up small wins quickly that motivate you to continue with the plan. With the avalanche method, you first focus on the balance with the highest interest rate, thus lowering your overall costs.

However, before you throw every dollar at your debt, experts recommend building a small emergency fund of about $1,000. Having this buffer, they say, reduces the risk of relying on credit cards again in the future to cover sudden, essential expenses.

Ideally, you want this money to earn as big of a return as possible while ensuring the funds can be accessed whenever you need them. With that in mind, your best option is probably to park your emergency dollars in a high-yield savings account that pays a solid return on your money, but lets you make withdrawals any time you want. Our daily ranking of the best high-yield savings accounts includes more than a dozen options that pay above 4.30% annual percentage yield (APY), many with no minimums, fees, or special requirements.