Younger generations, especially millennials, have a poor reputation regarding money management. Older people may be quick to point out that this demographic has a lot of student loan debt and relies too heavily on credit cards for purchases. You may even have some of the same assumptions yourself. However, statistics actually say something different.
Despite the fact that younger people have a reputation for poor money habits, they are not the generation with the most credit card debt. Regardless of how old you are, credit card debt can be a major financial hindrance, causing significant problems and complications. Illinois readers of all ages may find themselves struggling under the weight of an unmanageable financial burden.
Who has the most credit card debt?
Despite what you may think, millennials are not the generation with the most credit card debt. Interestingly, older generations rely much more heavily on credit cards. Consider the following facts:
- While 65.6% and 67.6% of Baby Boomers and Gen Xers have credit card balances, only 56% of millennials have a credit card balance.
- Of all three major generational groups, millennials actually owe the least amount on their credit cards.
- Statistics indicate that the average amount of credit card debt for an American is around $6,000.
Credit card spending can quickly add up, and there are many reasons why the older generations may have more credit card debt. One reason may be that these are the generations with more financial obligations, including raising kids or sending them to college. This is expensive, and the result may be a reliance on credit cards to carry them through.
There are risks involved with carrying a significant amount of credit card debt later in life. An older person has fewer years left during which he or she can pay down debt, and it can be even more difficult to address financial concerns after retirement.
Options for individuals in debt
A person who is in over his or her head in credit card debt does not have to remain so. Whether you are a millennial just starting out or a member of the Baby Boomer generation, there is no shame in acknowledging that your financial situation is beyond your control.
Which generation has the most credit card debt? By filing for bankruptcy, you may be able to address some of your financial concerns once and for all. This includes dealing with credit card debt and securing a better, more stable future for you and your family.