QoD: What is the average credit card debt held by Gen Z? (2024)

FAQs

QoD: What is the average credit card debt held by Gen Z? ›

The average balance of members of Generation Z (ages 18 to 26) was the lowest, at $3,262, but that balance increased by around 14 percent. On an individual level, the overall average balance was around $6,501, according to Experian's data.

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.

However, Gen Z has the second lowest average credit utilization rate, despite having the least amount of life experience and a comparatively low average total credit limit of about $19,291. Gen Z uses about $6,600 less credit than millennials, and almost $9,500 less than Gen X.

Overall, Gen Zers carry an average of 3.41 cards in their wallets in 2023 — up from 2.5 cards the year prior.

The news: Gen Z's credit card debt is growing faster than that of any other generation, according to data from Credit Karma.

Members of Generation Z are struggling to keep up their credit scores because of a combination of higher borrowing costs, slowing wage growth, student loans and other debts.

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

The average American owed $103,358 in consumer debt in the second quarter of 2023, the latest data available, according to credit bureau Experian.

How many credit cards does the average person have? According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365. And their credit journey usually begins early, with the average Gen Z consumer having 2.1 credit cards.

What is Gen Z minimum year? ›

Most sources agree that Gen Zers were born between 1997 and 2012. So, as of 2023, the Gen Z age range is roughly between 11 and 26 years old.

Generation Z (Gen Z) refers to the generation of Americans born from 1997 to 2012. The oldest members of Gen Z are starting their post-education years, with new careers and, possibly, families; the youngest are 12.

72% of Gen Z has a checking account, while 57% has a savings account. Many of these existing accounts could have been created jointly with another adult. 9% of Gen Z is considered underbanked—along with a whopping 52% of millennials.

The estimated average annual earnings for Gen Z are $22,924.68, or $1,910.39 per month. Gen Z spend most of their money on household bills expenses, with 52.3% saying they spent the most money on these costs. The estimated average amount Gen Z spends on socializing is $166.75 per month, totaling $2,000 a year.

Gen Z represent $450 billion in spending power (Snapchat) Despite not having reached their full economic potential yet, Gen Z already represents a huge market. According to the BBC, in the US alone Gen Z represents $360 billion in spending power.

Young Americans and Credit Card Debt by the Numbers

Younger consumers and those newer to owning a credit card are not exempt from credit card debt. According to the GOBankingRates survey, 28% of Americans under the age of 24 have over $1,000 in credit card debt.

Generation Z is racking up more credit card debt than previous generations, while Generation X holds the highest average of credit card debt, according to recent data from Credit Karma.

Americans collectively owe over $1 trillion in credit card debt. But one generation carries the most, on average: Gen X. The average credit card balance for Gen Xers, defined at those between the ages of 43 and 58, rose to $9,123 in the third quarter of 2023, according to Experian's latest available data.

Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year.