Are you a millennial? Or are you closer to retirement? You place in life naturally can suggest what sort of debt situation you are living with.
Logically, with more time under our belts, you'd think that people who have lived longer might have accumulated more debt. But on the other hand, more time might mean that the older generations have had more time to pay off their debts.
What is the reality of credit card debt trends based on age?
Younger millennials (18-24)
About 70 percent claim they don't have any credit card debt.
Older millennials (25-34)
About 40 percent have credit card debt, the median amount being around $2,000.
Young Generation Xers (35-44)
About 46 percent have credit card debt, the median amount being $4,000.
Older Generation Xers (45-54)
About 42 percent have credit card debt, the median amount being about $2,000.
Baby Boomers (55-64)
About one-third have credit card debt, the median amount being $3,000.
Seniors (65 and up)
About 28 percent have credit card debt, the median amount being $1,600.
Based on the research, it looks as though the group most impacted by credit card debt in the U.S. is the young Generation Xers. It makes some sense. This age demographic still might be paying off student loans, have younger kids and a mortgage to pay. They are still amping up in their careers and not at their best earning potential yet.
There are various reasons why someone might struggle with credit card debt. We will continue discussing those reasons, some of them age-specific, and how to try to combat the stress of debt in future posts.