Credit card becomes major issue when amount of debt is skyrocketed significantly. Men and women use this card to pay almost everything for daily basis needs. Based on data, only less than 40% of Americans hold credit card. This information gives insight about many people are out of reach from this debt. How much is average credit card debt by age? This is question that very interesting to answer.
Before explore this topic, you need to know the way credit card work. Besides that’s, some people still find difficulty to distinguish between credit and debit card. Average credit card debt by age also depends on both question due to capability to utilize better between specific age group and others.
You open bank account then receive card to do financial transaction such as transfer money, paying groceries, etc. This is debit card because you have limit amount of money to spend according to what you own at saving. On contrary, bank or credit card issuer lends money when customer wants to pay anything. This money is loan that put into credit account. Client has obligatory to fulfill monthly payment including interest. It is called credit card because everything you do rely on this card that creates debt by credit card.
Credit Card Debt by Age
Data from Federal Reserves and U.S. Census Bureau showed than average credit card debt was $5,700 in 2017 and expected to be over $6,000 in 2018. This is average debt for each person who have credit card. Based on this data, you will know average credit card debt by age.
Age divides into some groups based on era when they born. Old generation means people with age more than 75 years old. Baby boomers are people who born late 1940s until early 1960s. Generation X is born after Baby Bloomers until 1980s. Millennial generations are born after 1980s until mid-1990s. The last one is generation Z as people who born after mid-1990s. It seems millennial belong to what people called as Generation Y. That is age group for average credit card debt by age.
Data for average credit card debt by age showed that Baby Bloomer is at top list for spending much money via credit card. Their debt rises for more than $6,800. This condition is similar to age group below this one or Generation X. Debt is quite equal with high percentage among this group. On the other side, old generation spends less than $3,700.
The other interesting information is Generation Y that only spends lower, but percentage grows significantly. For the youngest group, credit card debt is less than $2,000 and the highest portion for spending credit card. That is basic information about average credit card debt by age.
It seems natural that someone will use more money to fulfill needs as age grows older. The youngest generation may turn into the highest one after one or two decades, even only less than 5 years. Digital era signifies and support credit card utilization due to online transaction. In the future, average credit card debt by age will change significantly, particularly between Generation Y and Z.