Here’s how much credit card debt Americans have by age—and which generation owes the most

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. That marks the highest average credit card balance of any generational cohort.

On an individual level, the overall average balance is around $6,501, per Experian’s data. Other generations’ credit card debt falls closer to that average or below.

Here’s the average amount of credit card debt Americans hold by age as of the third quarter of 2023, according to Experian.

Although Gen Xers hold the most credit card debt by generation, millennials’ average balances increased the most, jumping by a little over 15% in the last quarter of 2023, compared with the last quarter of 2022. Gen Zers aren’t too far behind with their balances increasing by around 14%.

A couple of factors may be contributing to the rise in credit card balances among all generations. The higher costs of electricity, auto insurance and heating combined with rising credit card interest rates may mean people have less money to chip away at their debt, Experian reports.

If you find yourself struggling to pay down your credit card debt, get a clear picture of your finances first. That means taking a look at how much you owe on your credit cards and how much money you earn each month.

“It has to start there. Once you have that, you can start to make some decisions about your income and expenses and begin to craft your approach,” Matt Schulz, chief credit analyst at LendingTree, tells CNBC Make It.

Next, make a plan to tackle your debt. You have a number of strategies to choose from depending on your situation. Here are two popular options:

1. Snowball method: After making the minimum payments on all of your cards, dedicate any extra funds to the card with the smallest balance first, then work your way up to paying down your largest balance. With this strategy, you rack up small victories in the beginning as you clear your lower balances, which can help motivate you to continue to pay down your larger ones.
2. Avalanche method: After making minimum payments on all of your credit cards, focus on the one with the highest interest rate. Over time, this will minimize the amount you pay in costly interest charges, which can inflate the overall amount you owe.

No matter which strategy you choose, the most important thing is to get started sooner rather than later, Schulz says.

“There’s no one-size-fits-all answer for which one is best,” he says. “Ultimately, the best approach for you is the one that will keep you motivated until the end.”

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