Americans collectively owe over $1 trillion in credit card debt, with Gen X carrying the most debt on average. As of the third quarter of 2023, the average credit card balance for Gen Xers, aged 43 to 58, was $9,123, the highest of any generation. On an individual level, the overall average credit card debt is around $6,501. While other generations’ credit card debt falls closer to this average or below, millennials and Gen Z have seen the biggest increases in their average balances in recent quarters.
Several factors may be contributing to the rise in credit card debt among all generations. Rising costs of electricity, auto insurance, and heating combined with increasing credit card interest rates may leave people with less money to pay off their debts. To tackle credit card debt, individuals should first assess their finances by determining how much they owe and how much they earn each month. Making a plan to pay off debt is crucial, and popular strategies include the snowball method, which focuses on paying off smaller balances first, and the avalanche method, which targets high-interest debt first.
It is essential to start tackling credit card debt as soon as possible to avoid further financial burden. There is no one-size-fits-all approach to debt repayment, so individuals should choose a strategy that will keep them motivated until the end. Seeking additional sources of income can also help address debt more effectively. CNBC offers an online course on earning passive income, providing tips and success stories to guide individuals in generating additional revenue. By taking proactive steps to manage credit card debt and explore new income opportunities, people can improve their financial well-being and work towards a more stable financial future.
Overall, credit card debt is a significant issue in the United States, with Gen Xers holding the highest average balances among all generations. Millennials and Gen Z have also seen notable increases in their credit card debt in recent quarters. Rising expenses and interest rates may be contributing to this trend, making it essential for individuals to take proactive steps to address their financial situation. By creating a plan to pay off debt and exploring opportunities to earn additional income, people can work towards reducing their debt burden and achieving financial stability in the long term. Taking control of one’s finances and seeking outside resources for support can lead to a brighter financial future and improved overall well-being.
