How much credit card debt does the average 40-something have?

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Although more Americans have limited their discretionary purchases during the pandemic – and have tried to stay frugal during this current period of high inflation – many consumers have relied on their credit cards to keep up with ever-rising prices in the market. .

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As CNBC reports, first-quarter figures from the New York Federal Reserve show credit card balances rose year-over-year to $841 billion. Although these are slightly lower than the increased figures for the 2021 Christmas season, Fed researchers predict that credit card balances will increase throughout 2022.

“There’s a good chance that Americans’ total credit card balances will soon hit a new all-time high, marking a sharp reversal from the precipitous drop that occurred in 2020 and early 2021,” Ted said. Rossman, CreditCards.com analyst.

Which age group has the most credit card debt?

According to The Motley Fool, data from 2021 Personal Capital shows that its members have an average credit card balance of $6,100 and those in their 40s have the highest average balance: $9,379. Young people in their 20s and 30s have average credit card balances of $3,511 and $6,568, respectively.

These 40-somethings have worked long enough to earn higher wages and carry more debt than younger (who are likely to have less experience) and older (who are likely nearing retirement). Higher income generally equates to higher expenses, which lends some logic to this equation.

“The amount of credit card debt you can comfortably carry depends on your income and how much other debt you’re carrying at the same time,” Gary Herman, president of Consolidated Credit, said in a blog post. the company. “With that in mind, it makes sense that people in their prime are the most indebted and that average balances rise and then fall over time.”

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These data are consistent with similar comparisons between age and debt. CNBC’s “Select” recently broke down the average credit card debt by generation – according to the latest data from Experian – noting that Gen Xers (born between 1965 and 1979/80) had the most credit card debt highest average at $7,155, followed by baby boomers (1946-1964, $6,043); then Generation Y (1981-1994/96, $4,322); the Silent Generation (1928-1945, $3,177) and finally Generation Z (1997-2012, $1,963).

Regardless of the data set, it seems that 40-somethings definitely carry more credit card debt than their peers.

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About the Author

David Nadelle is a freelance editor and writer based in Ottawa, Canada. After working in the energy industry for 18 years, he decided to make a career change in 2016 and focus full-time on all aspects of writing. He recently completed a technical degree in communications and holds previous university degrees in journalism, sociology and criminology. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience writing for the retail industry.